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Tuesday, January 30, 1973

SALARIES TAX HET NEW HIGH IN 1971-72

Improved Conditions Of Service Reflected

Net salaries tax assessed in the last financial year amounted to a

new record of $163.4 million as compared with the previous year's record of

$126.4 million.

This was stated by Mr. F.E. Rainbow, the Commissioner of Inland

Revenue, in his 1971-72 Annual Report.

He said the increase represented 29.3 per cent over the previous

year and was nearly three times the amount of tax assessed in 1966–67.

"The marked increase in net tax assessed clearly indicates the

considerable increase in the level of emoluments paid to employees during the

year," Mr. Rainbow said.

It also reflected the "improved conditions of service offered by

employers in general as a result of favourable trading or other activities"

mainly carried on in Hong Kong, he added.

During the year, a total of 47,123 people was assessed salaries tax.

The average charge per capita during the year was $2,233.

Mr. Rainbow said this was considerably higher than the average of

$1,980 in 1970-71, "confirming the trend of recent years and indicative of the

generally continuing rise in levels of remuneration".

The largest number (60.4%) of taxpayers fell within the income range

of $1,000 to $3,000 per month.

A total of 2,627 taxpayers paid their salaries tax at the standard rate

of 15 per cent on the total income less charitable donations but without any

deduction for personal allowances.

This group was charged with $55.5 million or 45.7 per cent of the 1971-72

Salaries Tax charged.

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