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He estimated that these concessions will cost $1.9 billion in 1996-97 and $12.4 billion up to 1999-2000.
Mr Tsang said the last three Budgets had already provided substantial benefits to salaries taxpayers. As a result,
There has been a real increase of 34 per cent in both the basic and the married person's allowances.
The proportion of the total workforce with no liability to pay Salaries Tax has increased from 46 per cent to 60 per cent.
The proportion of standard rate taxpayers has decreased from six per cent to two per cent of the workforce.
The average effective rate of tax paid by salaries taxpayers has decreased from nine per cent to eight per cent.
These have been substantial improvements, he said, but priority should be given to salaries taxpayers when it comes to tax concessions as they are the largest single group of taxpayers and they are by no means the wealthiest sector of the community.
End
Estate duty revised
The rates of Estate Duty will be further revised this year to offset the effect of inflation.
"This year, I propose to further increase the level below which no duty is payable from $6 million to $6.5 million," the Financial Secretary, Mr Donald Tsang, said.
Above that level, Mr Tsang proposes that Estate Duty be payable at 6 per cent on estates between $6.5 million and $8 million: 12 per cent for estates between $8 million and $9.5 million; and 18 per cent on estates over $9.5 million.