38
Wednesday, February 28, 1973
PROPOSED REFORMS IN SALARIES TAX
Personal Allowance To Go Up To $10,000
Abolition of Special Allowances For Working Wives
EX
The budget proposals on salary tax, including an increase in the
personal allowance from $7,000 to $10,000, would result in a net cost to the
revenue of $15.5 million.
Speaking in the Legislative Council, the Financial Secretary, the
Hon. C.P. Haddon-Cave, said the proposals were "designed to afford relief on
grounds of equity to some members of the salaries tax paying and personal
assessment class and to simplify tax administration."
He said the relief accorded by the reduction in revenue would vary as
between taxpayers in different income groups and in different family circumstances.
The Commissioner of Inland Revenue, he said, would publish shortly a
series of illustrative tables.
Referring to the raising of the personal allowance, the Financial
Secretary said this "would be more effective in that it would relieve the
burden of many more married taxpayers.
effort."
Moreover, it "would result in a saving of administrative time and
Turning to the proposal to adjust the point at which the standard rate
of 15 per cent on gross income applied to a gross income of $70,000 with tax
of $10,500, Mr. Haddon-Cave said that simplicity suggested five platforms.
These
Page 40Page 41