CO129-615-2 Income tax 10-3-1947 - 6-2-1948 — Page 247

FAR EAST

LESS TAX - MORE FAMILY ALLOWANCES IN HONGKONG

HONGKONG, THURSDAY – WITH CHINESE OPPOSITION TO HONGKONG'S FIRST ATTEMPTS AT DIRECT TAXATION REACHING ITS CLIMAX TODAY WITH A PETITION TO THE GOVERNOR, SIR MARK YOUNG, THE GOVERNMENT ANNOUNCED MODIFICATIONS IN THE DIRECT TAXATION BILL WHICH IT IS INTRODUCING INTO THE LEGISLATIVE COUNCIL.

THE STANDARD RATE IS FIXED AT TEN PER CENT, PERSONAL ALLOWANCES ARE INCREASED FROM 5,000 TO 7,000 HONGKONG DOLLARS CABOUT £300 TO £400), WIFE ALLOW ANCE FROM 4,000 TO 5,000 HONGKONG DOLLARS CABOUT £250 TO £300) WITH CHILD ALLOWANCES RANGING FROM 2,000 HONGKONG DOLLARS CABOUT £125)

FOR THE FIRST AND SECOND CHILD TO 1,000 HONGKONG DOLLARS

(ABOUT £60) FOR THE THIRD AND FOURTH CHILD AND 200

HONGKONG DOLLARS CABOUT £12) FOR EACH CHILD AFTER THE FOURTH.

A TWENTY PER CENT ALLOWANCE IS MADE FOR REPAIRS TO

PROPERTY.

THE ORIGINALLY ESTIMATED REVENUE FROM DIRECT TAXATION OF 12,000,000 HONGKONG DOLLARS CABOUT £750,000) ANNUALLY WILL BE CONSIDERABLY REDUCED BY THE MODIFICATIONS AS A VERY SMALL PERCENTAGE OF THE SALARIED CLASS, ESPECIALLY AMONG THE CHINESE, ARE LIABLE FOR THE SALARIES TAX.

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