24
WEDNESDAY, MARCH 3, 1993
NO CHANGE IN CORPORATE PROFITS TAX
*
TAX,
NO
PROFITS CHANGE IS PROPOSED IN THE LEVEL OF CORPORATE
IN PRESENTING THE FINANCIAL SECRETARY, THE HON HAMISH MACLEOD, SAID HIS 1993/94 BUDGET IN THE LEGISLATIVE COUNCIL TODAY (WEDNESDAY).
"AS
то
I FORECAST IN MY BUDGET SPEECH LAST YEAR, THE INCREASE HAD NO APPRECIABLE IMPACT ON LOCAL OR INTERNATIONAL ENTHUSIASM 17.5% FOR INVESTMENT IN HONG KONG. INDEED, THE FIGURES ON CAPITAL FORMATION
HE SAID. SHOW THAT 1992 WAS AN EXCELLENT YEAR FOR INVESTMENT GROWTH,
E
"NEVERTHELESS, I DID EXAMINE THE CASE FOR A REDUCTION IN WOULD PROFITS TAX, A REDUCTION OF ONE PERCENTAGE POINT IN PROFITS TAX HAVE COST $1.6 BILLION A YEAR. THIS LOSS OF REVENUE WOULD HAVE I HAD TO BE LESS GENEROUS IN REDUCING THE TAX BURDEN FOR OUR TAX-PAYING HOUSEHOLDS, WHICH WAS THE OVERWHELMING CONCERN OF MEMBERS.
MEANT SALARIES
11
STAMP DUTY
MR
THE MACLEOD SAID IN EACH OF
PAST
THE TWO YEARS,
OF STAMP
THIS LOWERED. DUTY ON STOCK TRANSFERS HAD BEEN RECOGNITION OF A WORLD-WIDE TREND TOWARDS REDUCING THE COST OF MARKET
IN 1991, THE RATE OF CONTRACT TRANSACTIONS.
NOTE DUTY REDUCED FROM 0.6% TO 0.5%. LAST YEAR, HE HAD MADE A FURTHER REDUCTION TO 0.4%, AND HE NOW PROPOSED TO MAKE ONE MORE REDUCTION FROM 0.4% 0.3%.
WAS
LEVEL IN
STOCK
WAS
TO
"THIS REDUCTION SHOULD HELP HONG KONG TO REMAIN COMPETITIVE COMPARISON WITH THE OVERALL COST OF TRADING ELSEWHERE IN THE THIS CONCESSION WILL COST THE REVENUE A FURTHER $800 MILLION IN 94, OR NEARLY $4 BILLION OVER THE PERIOD UP TO 1996/97.
IN
WORLD. 1993/
"THE MAIN AIM OF THIS CONCESSION IS TO ENSURE HONG KONG REMAINS
AND
KEY HENCE TO GENERATE BUSINESS IN THIS COMPETITIVE
SECTOR. BELIEVE THAT BROKERS WILL FULLY UNDERSTAND THE IMPORTANCE OF ON THE BENEFIT TO THE INVESTING PUBLIC," HE SAID.
I
PASSING
ESTATE DUTY
ΤΟ 6%
MR MACLEOD SAID FOR TWO YEARS, NO ADJUSTMENT HAD BEEN MADE THE LEVEL OF ESTATE DUTY. THIS WAS CURRENTLY CHARGED AT A RATE
12% ON MILLION: ON ESTATES VALUED AT BETWEEN $4 MILLION AND $4.5
18% ON ESTATES OVER ESTATES BETWEEN $4.5 MILLION AND $5 MILLION; AND $5 MILLION.
OF
DUTY,
"ALTHOUGH THE MATRIMONIAL HOME IS ALREADY EXEMPT FROM RSTATE THIS WHICH I BELIEVE THAT IT IS NOW TIME TO REDUCE THE IMPACT DUTY HAS ON RELATIVELY SMALL ESTATES. I PROPOSE TO INCREASE THE BELOW WHICH NO DUTY IS PAYABLE ON ESTATES TO $5 MILLION.
LEVEL
/"ABOVE THAT
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