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"Mr personal view is that a case could be made out for a comprehensive review of profits tax to examine whether we can make our tax system and business environment even more competitive," he said, adding that this review would proceed next year.
To maintain the real value of the duty charged on fuel, tobacco and methyl alcohol, Mr Tsang proposed to raise the duty rate by six per cent, in line with the rate of inflation.
"This will bring in additional revenue of $430 million in 1997/98 and $1.9 billion up to 2000/01," he said.
End
Salaries tax concessions proposed
The Financial Secretary, Mr Donald Tsang, today (Wednesday) proposed a wide range of concessions in salaries tax and a number of changes in the marginal tax
structure.
Moving the second reading of the Appropriation Bill 1997 in the Legislative Council, he proposed the following concessions in salaries tax:
to increase the basic allowance from $90,000 to $100,000 and the married person's allowance from $180,000 to $200,000. This is an increase of 11.1 per cent, well above the rate of inflation.
to increase the allowance for the first and second child by 10.2 per cent, from $24,500 to $27,000.
to increase the allowance for the third to the ninth child by 12 per cent, from $12.500 to $14,000.
to increase the basic allowance for dependent parents and for grandparents from $24,500 to $27,000 (a rise of 10.2 per cent) and the additional allowance from $7,000 to $8,000 (a rise of 14.3 per cent).
to increase allowance for dependent brothers and sisters by 10.2 per cent, from $24,500 to $27,000.