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REVENUE PROPOSALS
"Our revenue arrangements should support Hong Kong's role as a centre for international business, and they should reflect our commitment to financial prudence and economic autonomy." (Para 87)
Areas of No Change
Tax Relief for Housing
"It would be wrong in principle to create a general tax concession, regardless of the individual family's needs, to cover investment in housing." (Para 89)
"Any help which the Government provides to promote home ownership should be given specially to those families which need such assistance." (Para 90)
"Between 1991 and 1996, the number of households owning their own home rose by 22 per cent. Today, more than 50 per cent of households own their own home." (Para 90)
Profits Tax
"By comparison with our competitors in the region, our level of Profits Tax is already very low. We are still highly competitive even when we look at their effective tax rates." (Para 92)
A Dividend for the Community
Salaries Tax
"I believe that, given our strong financial position, it is right to reduce Salaries Tax once again." (Para 97)
"In a caring community which respects traditional family values, the tax system should recognise the special difficulties faced by single parents or families caring for relatives, particularly those with a disability." (Para 98)
"A married couple with two children will have to earn over $100,000 a month, or more than $1.2 million a year, before they pay salaries tax at the standard rate of 15 per cent." (Para 102)