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WEDNESDAY, MARCH 4, 1992
HE PROPOSED ΤΟ INCREASE THE AGGREGATE SINGLE AND MARRIED PERSON'S ALLOWANCES BY OVER 12%, FROM $41,000 AND $82,000 TO $46,000 AND $92,000 RESPECTIVELY.
IN ADDITION, HE PROPOSED INCREASES RANGING BETWEEN 11% AND 15% IN THE ALLOWANCES FOR THE FIRST CHILD, SECOND CHILD, DEPENDENT PARENT AND SINGLE PARENT.
THESE CONCESSIONS WILL TAKE EFFECT FROM THE YEAR OF ASSESSMENT COMMENCING APRIL 1, 1992.
MR MACLEOD SAID THESE PROPOSALS WOULD COST $850 MILLION IN 1992-93, OR $1.2 BILLION IN A FULL YEAR.
"THEY
OF
WILL CUT THE TAX BILL FOR 1.2 MILLION TAXPAYERS (83% THE TOTAL). A FURTHER 120,000 (8% OF THE TOTAL) WILL BE FREED COMPLETELY FROM PAYING ANY SALARIES TAX," HE SAID.
THE FINANCIAL SECRETARY POINTED OUT THAT LAST YEAR, TAX WERE SIMPLIFIED TO BENEFIT TAXPAYERS WITH LOWER INCOMES. AT THE TIME, PERSONAL ALLOWANCES FOR SINGLE PERSONS AND MARRIED COUPLES INCREASED.
BANDS
SAME WERE
OF
THE
..
"NEVERTHELESS, THERE HAS BEEN SOME CRITICISM THAT THE VALUE PERSONAL ALLOWANCES HAS NOT KEPT PACE WITH INFLATION. IN ASSESSING THESE CRITICISMS, IT IS WORTH REMEMBERING THAT WELL OVER HALF OF WORKING POPULATION OF HONG KONG IN FACT PAYS NO SALARIES TAX AT AND OF THOSE WHO DO, ONLY 100,000 PAY TAX AT THE STANDARD RATE, HE SAID.
ALL;
MR MACLEOD SAID HE HAD CONSIDERABLE SYMPATHY WITH THE GENERAL AIM OF MAINTAINING THE VALUE OF PERSONAL ALLOWANCES, ALTHOUGH THIS COULD NOT BE DONE AUTOMATICALLY, ON AN ANNUAL BASIS, BECAUSE OF THE NEED TO CONSIDER DETAILED FISCAL AND ECONOMIC CIRCUMSTANCES YEAR BY YEAR.
THE PROPOSED INCREASE IN ALLOWANCES WOULD NOT ONLY PROVIDE RELIEF TO TAXPAYERS BUT WOULD ALSO RESULT IN A SIGNIFICANT NUMBER OF TAXPAYERS DROPPING OUT OF THE TAX NET ALTOGETHER, THE FINANCIAL SECRETARY SAID.
DUTY ON SOFT DRINKS
THE FINANCIAL SECRETARY PROPOSED TO ABOLISH WITH EFFECT FROM THIS AFTERNOON (WENDESDAY) DUTY ON SOFT DRINKS WHICH WAS INTRODUCED IN 1985 AS A REVENUE RAISING MEASURE.
THIS
YEAR.
CONCESSION WILL COST THE REVENUE ABOUT $230 MILLION
A
MR MACLEOD SAID HE HAD TAKEN STEPS WHICH SHOULD ENSURE THAT THE FULL BENEFIT WAS PASSED ON TO CONSUMERS.
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