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Proposals for tax concessions on rent or mortgage
.Following is a question by the Hon James Tien Pei-chun and a written reply by the Secretary for the Treasury, Mr K C Kwong, in the Legislative Council today (Thursday):
Question:
At present people in the territory especially those in the low-income bracket have to bear a heavy mortgage repayment burden. Moreover, there were between 300 and 400 forfeiture of deposit cases a year in the purchase of Home Ownership Scheme flats over the past two years and there is a tendency for such cases to continue to increase. In this connection, will the Government inform this Council whether it will reconsider adding a "Housing Allowance" in the salaries tax personal assessment, which will enable taxpayers to enjoy tax exemption of an amount set at $20,000 per annum on actual expenditure on rent or mortgage repayment, so that the burden of taxpayers with heavy expenditure on housing can be alleviated?
Reply:
Among our key It revenue principles are maintenance of a low, simple and predictable tax regime and provision of tax concessions where most needed, having regard to our budgetary position. The Financial Secretary is currently consulting Members on the revenue measures for the 1996-97 Budget. Proposals for tax concessions for accommodation expenditure have been raised by Members in that exercise. We will examine these proposals carefully, having regard to the principles stated above, before the Financial Secretary formulates the revenue measures for the coming Budget.
End/Thursday, November 2, 1995