2
WEDNESDAY, APRIL 27, 1994
"THE NEW SYSTEM IS ALSO MORE CLEARLY
NON-DISCRIMINATORY
AND
COMPATIBLE WITH THE GATT PRINCIPLES OF NON-DISCRIMINATION AND NATIONAL TREATMENT, SIR HAMISH SAID.
77
PRICE LOCAL ONE FOR
"THE PROPOSAL TO CALCULATE AD VALOREM DUTY ON THE EXPORT OF AN IMPORTED PRODUCT AND THE EX-MANUFACTURER PRICE OF A WILL HAVE THE EFFECT OF CREATING AN EVEN MORE LEVEL PLAYING FIELD THESE TWO TYPES OF PRODUCTS," HE SAID.
HYDROCARBON
THE BILL WOULD ALSO INCREASE THE SPECIFIC DUTY ON OILS BY 8.5 PER CENT IN LINE WITH INFLATION. THIS WAS INTENDED MERELY TO MAINTAIN THE REAL VALUE OF THE DUTY.
BILL
MOVING THE SECOND READING OF THE ESTATE DUTY (AMENDMENT) 1994, MR KWONG SAID IT WOULD ADJUST THE LEVEL AT WHICH ESTATE DUTY WAS ON RELATIVELY SMALL LEVIED SO AS TO REDUCE THE IMPACT OF THE TAX ESTATES.
THE LEVEL FROM $5 MILLION TO
BELOW WHICH NO DUTY IS PAYABLE WOULD $5.5 MILLION.
BE INCREASED
RATES OF DUTY
ABOVE THAT LEVEL, THE BILL WOULD REDUCE THE PAYABLE ON ESTATES VALUED BETWEEN $5.5 MILLION AND $7.5 MILLION.
HE SAID.
IN ADDITION, THE BILL WOULD INTRODUCE THREE OTHER
CONCESSIONS,
BY FIRST, IT WOULD INCREASE THE EXEMPTION LIMIT FOR GIFTS MADE
DEATH FROM A DECEASED PERSON WITHIN THREE YEARS BEFORE THE DATE OF $100,000 TO $200,000.
MATRIMONIAL HOME SECONDLY, IT WOULD EXCLUDE THE VALUE OF THE WHEN DETERMINING THE AGGREGATE VALUE OF AN ESTATE FOR DUTY PURPOSES,
LASTLY, IT WOULD INCREASE THE ALLOWANCE FOR INCURRED IN HONG KONG FROM $10,000 TO $50,000.
FUNERAL EXPENSES
THE ESTIMATED COST OF THESE MEASURES TO GENERAL REVENUE BE $85 MILLION IN 1994/95 AND ABOUT $425 MILLION UP TO 1997/98.
WOULD
ON THE STAMP DUTY (AMENDMENT) BILL 1994, MR KWONG SAID IT WOULD LOWER AND MEDIUM-VALUE ADJUST THE RATES OF STAMP DUTY PAYABLE ON FLATS.
A FEE OF CHARGED
FOR PROPERTIES WITH A VALUE NOT EXCEEDING $500,000, $100 WOULD BE PAYABLE. ABOVE THIS LEVEL, STAMP DUTY WOULD BE ACCORDING TO A SLIDING SCALE, SUBJECT TO MARGINAL RELIEF.
THE THRESHOLD AT WHICH THE 2.75 PER CENT RATE BEGINS TO WOULD BE RAISED FROM $1.5 MILLION TO $3 MILLION.
APPLY
SOME 100,000 PROPERTIES WOULD BENEFIT FROM THIS TAX CONCESSION,
HE SAID.
THE COST OF THIS CONCESSION TO GENERAL REVENUE WOULD AMOUNT ABOUT $810 MILLION IN 1994/95 AND $3.9 BILLION UP TO 1997/98.
/THE BILL
TO