WEDNESDAY, MARCH 2, 1994
THE
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BUSINESS REGISTRATION FEE RAISED TO $2,000
FINANCIAL SECRETARY, THE HON SIR HAMISH MACLEOD, TODAY (WEDNESDAY) PROPOSED TO RAISE THE BUSINESS REGISTRATION FEE FROM THE PRESENT $1,000 TO $2,000.
THE PROPOSED INCREASE WOULD GENERATE ADDITIONAL REVENUE OF $700 MILLION IN 1994/95 AND $3.4 BILLION UP TO 1997/98.
PRESENTING HIS BUDGET FOR 1994/95, SIR HAMISH SAID
HONG KONG HAD SOME 600,000 REGISTERED BUSINESSES AND WELL OVER HALF OF WHICH HAD NO LIABILITY AT ALL TO PROFITS TAX,
NOTING THAT THIS COULD OCCUR PERFECTLY LEGITIMATELY AS SOME OF THESE BUSINESSES EARNED NO PROFITS IN HONG KONG AND OTHERS NO PROFITS WHATSOEVER, SIR HAMISH SAID NEVERTHELESS, ALL THESE FIRMS ENJOYED FREE ACCESS TO THE CONVENIENCE AND THE PUBLIC FACILITIES WHICH HONG KONG OFFERED TO THEM.
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SIR HAMISH THOUGHT IT REASONABLE THAT SUCH BUSINESSES BE ASKED CONTRIBUTE A LITTLE MORE, WHILST COMPANIES WHICH DID PAY PROFITS WOULD PAY A LITTLE LESS AS A RESULT OF HIS PROPOSED REDUCTION IN CORPORATE PROFITS TAX.
TAX
NOTING THAT THERE WAS A FURTHER ADVANTAGE TO THIS PROPOSAL, SAID IT WOULD HAVE THE EFFECT OF MODESTLY BROADENING HONG KONG'S BASE AND ACHIEVING GREATER STABILITY OF REVENUE.
HE
TAX
SIR
TO PROVIDE RELIEF TO BUSINESSES WITH A SMALL TURNOVER, HAMISH PROPOSED TO INCREASE SUBSTANTIALLY THE LEVELS BELOW WHICH PAYMENT OF THE BUSINESS REGISTRATION FEE WAS EXEMPT.
"IN FUTURE, A BUSINESS WILL BE EXEMPT FROM THE FEE IF ITS AVERAGE MONTHLY SALES DO NOT EXCEED $15,000; OR, WHERE THE BUSINESS CONSISTS OF RENDERING SERVICES, IF ITS AVERAGE MONTHLY RECEIPTS DO NOT EXCEED $4,000," HE NOTED.
0
CONCESSIONS PROPOSED FOR ESTATE DUTY
DUTY
THE FINANCIAL SECRETARY, THE HON SIR HAMISH MACLEOD TODAY (WEDNESDAY) PROPOSED TO INCREASE THE LEVEL BELOW WHICH NO ESTATE WAS PAYABLE TO $5.5 MILLION.
MOVING THE SECOND READING OF THE APPROPRIATION BILL IN THE LEGISLATIVE COUNCIL, SIR HAMISH SAID ABOVE THAT LEVEL, HE PROPOSED THAT ESTATE DUTY BE PAYABLE AT 6% ON ESTATES OF BETWEEN $5.5 MILLION AND $6.5 MILLION; 12% FOR ESTATES OF BETWEEN $6.5 MILLION AND $7.5 MILLION; AND 18% ON ESTATES WITH A VALUE OVER $7.5 MILLION.
IN ADDITION, THE FINANCIAL SECRETARY CONCESSIONS IN RELATION TO ESTATE DUTY:
PROPOSED
THREE MORE
FIRST,
THE