WEDNESDAY, APRIL 27, 1994
1
REVENUE-RELATED BILLS INTRODUCED TO LEGCO
*
* * *
AND THE THE FINANCIAL SECRETARY, THE HON SIR HAMISH MACLEOD, ACTING SECRETARY FOR THE TREASURY, MR KWONG KI-CHI, INTRODUCED SIX BILLS INTO THE LEGISLATIVE COUNCIL THIS (WEDNESDAY) AFTERNOON TO GIVE EFFECT TO SOME OF THE REVENUE-RELATED PROPOSALS IN THE 1994/95 BUDGET.
IN
MOVING THE SECOND READING OF THE INLAND REVENUE (AMENDMENT) BILL 1994,
SIR HAMISH SAID IT WOULD MAKE SOME MAJOR CONCESSIONS RESPECT OF SALARIES TAX AND CORPORATE PROFITS TAX WITH EFFECT FROM THE 1994/95 YEAR OF ASSESSMENT.
FIRST, IT WOULD INCREASE SUBSTANTIALLY VARIOUS SALARIES TAX
ALLOWANCES.
SPECIFICALLY, THE
AND
BASIC ALLOWANCE AND THE MARRIED PERSON'S ALLOWANCE WOULD GO UP BY ABOUT 28 PER CENT TO $72,000
$144,000 RESPECTIVELY, WHILE ALLOWANCES FOR DEPENDENT CHILDREN, DEPENDENT PARENTS AND SINGLE. PARENTS WOULD BE INCREASED BY ABOUT 18 PER CENT.
SECONDLY, THE BILL WOULD INTRODUCE A NEW ALLOWANCE,
SET
HONG IN RESPECT OF DEPENDENT GRANDPARENTS RESIDENT IN $20,000, FOR WHOM NO DEPENDENT PARENT ALLOWANCE IS CLAIMED.
AT
KONG
THIRDLY, IT WOULD REDUCE THE TOP MARGINAL TAX RATE FROM 25 CENT TO 20 PER CENT.
FINALLY,
PER
THE BILL WOULD REDUCE THE CORPORATE PROFITS TAX RATE FROM 17.5 PER CENT TO 16.5 PER CENT, THUS RESTORING IT TO THE PRE-1992
ESTIMATED LEVEL. THE
TOTAL COST TO GENERAL REVENUE OF THESE CONCESSIONS WOULD BE $4.8 BILLION IN 1994/95 AND ABOUT $30.7 BILLION UP TO 1997/98.
REGARDING
THE DUTIABLE COMMODITIES (AMENDMENT) BILL 1994, HAMISH SAID IT HAD TWO PURPOSES.
SIR
FIRST, IT WOULD SIMPLIFY THE OLD ALCOHOL DUTY INTRODUCING A FULL AÐ VALOREM DUTY SYSTEM.
SYSTEM
BY
THE NEW SYSTEM WOULD ALSO BE FAIRER, HE SAID.
UNDER THE PROPOSAL, ALL ALCOHOLIC BEVERAGES AND OTHER ETHYL FOR ALCOHOL PRODUCTS WOULD BE CLASSIFIED INTO THREE BROAD CATEGORIES
PURPOSES BY DUTY
REFERENCE ΤΟ THEIR ALCOHOLIC STRENGTH AND
INGREDIENTS.
THE
CHARGED, DUTY
BEING AD VALOREM COMMENSURATE WITH THE VALUE OF A PRODUCT.
IN NATURE,
WOULD
BE
BEVERAGES AT
AS A RESULT OF THIS, A BROAD RANGE OF ALCOHOLIC THE CHEAPER END OF THE MARKET WOULD ENJOY A DUTY REDUCTION, HE SAID.
PRODUCTS AT THE HIGHER END OF THE MARKET WOULD BE REQUIRED PAY MORE IN DUTY, HE ADDED.
/"THE NEW
+
TO