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WEDNESDAY, FEBRUARY 27, 1980
UNDER THESE PROPOSALS, THE TAX PAYABLE BY A SINGLE PERSON EARNING $25 000 A YEAR WILL BE REDUCED FROM $875 TO $500, FOR MARRIED PERSONS WITH NO CHILDREN AT AN ANNUAL INCOME OF $45 000, THE TAX WILL BE LOWERED FROM $1 800 TO $1 000.
TAKING INTO ACCOUNT THE DEPENDENT PARENT ALLOWANCE, FOR A SINGLE PERSON WITH TWO CHILDREN AND TWO DEPENDENT PARENTS EARNING $35 000 A YEAR, THE TAX PAYABLE WOULD BE LOWERED FROM $487 TO $50 AND FOR MARRIED PERSONS EARNING $60 000 WITH THE SAME NUMBER OF CHILDREN AND DEPENDENT PARENTS, THE TAX WOULD BE REDUCED FROM $2 025 TO $600.
SIR PHILIP ALSO PROPOSED THREE OTHER TAX CONCESSIONS RELATING TO INTEREST TAX LIABILITY OF CREDIT UNIONS, ESTATE DUTY AND STAMP DUTY ON CONVEYANCES OF LOW VALUE PROPERTIES.
SIR PHILIP PROPOSED TO AMEND THE INLAND REVENUE ORDINANCE SO THAT INTEREST ON LOANS MADE BY CREDIT UNIONS TO THEIR MEMBERS BE EXEMPT FROM TAX FROM YEAR OF ASSESSMENT 1980-81. ON OUTSIDE INVESTMENT INCOME OF THESE UNIONS, HE SAW +NO COMPELLING ARGUMENT+ TO JUSTIFY EXEMPTION FROM INTEREST WITHHOLDING TAX, SINCE CREDIT UNIONS WERE NEITHER CHARITABLE INSTITUTIONS NOR TRUSTS OF A PUBLIC CHARACTER.
THE PROPOSAL WOULD COST $100 000 TO THE REVENUE.
ON ESTATE DUTY, HE PROPOSED TO RAISE THE EXEMPTION LIMIT FROM $400 000 TO $600 000 FOR THE ESTATES OF PERSONS DYING AFTER THE ENACTMENT OF THE NECESSARY LEGISLATION. THE COST TO THE REVENUE OF THIS PROPOSAL IS ESTIMATED TO BE ABOUT $5 MILLION IN 1980-81.
ON STAMP DUTY ON CONVEYANCE OF LOW VALUE PROPERTIES, HE PROPOSED TO RAISE THE LIMIT FOR THE CONCESSIONARY AD VALOREM RATE OF DUTY OF ONE PER CENT BY $75 000 TO $250 000 AT A COST TO THE REVENUE OF NO LESS THAN $67 MILLION IN 1980-81.
SIR PHILIP SAID THIS CONCESSION WAS IN RECOGNITION OF THE MUCH HIGHER LEVEL OF PRICES OF DOMESTIC FLATS+. A FURTHER 18 000 FLAT PURCHASERS WILL BENEFIT FROM THIS CONCESSION A YEAR IN ADDITION TO THE 40 000 FLAT PURCHASERS ALREADY ENJOYING IT NOW. CONCESSION WILL BE EFFECTIVE FROM THE OPENING OF BUSINESS TOMORROW MORNING.
THIS
BILLS TO AMEND THE INLAND REVENUE ORDINANCE TO PROVIDE FOR IMPLEMENTATION OF HIS PROPOSALS IN RESPECT OF PERSONAL TAXATION AND ESTATE DUTY WILL BE INTRODUCED INTO THE LEGISLATIVE COUNCIL AS SOON AS POSSIBLE.
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