XN000022-1973-02-28 — Page 3

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Wednesday, February 28, 1973

TAX RELIEF FOR WAGE EARNERS

Personal allowance To Be Raised from $7,000 to $10,000

Higher Duty On Shares Transactions

A number of tax reform and tax relief proposals were made by the

Financial Secretary, the Hon. C.P. Haddon-Cave, this afternoon when he

presented his budget to the Legislative Council.

He also announced increases in ad valorem duty on contract notes

in respect of share transactions and in fees for driving test application

forms and driving licences.

The tax reforms concern salaries tax, duty on bulk imports of alcoholic

liquors and stamp duty on jobbing transactions.

The proposed tax reforms on salaries tax are:

An increase in the personal allowance from $7,000 to $10,000;

An increase in the wife's allowance from $7,000 to $10,000;

An increase in the allowance for the first child from

$2,000 to $3,000 and of the maximum allowance for

I

children from $9,500 to $10,500;

An alteration of the schedular rates of tax so that, upon the first platform of $10,000 of net chargeable income, tax at five per cent is payable and upon each of the next four platforms of $10,000 a further five per cent. On net chargeable income over $50,000 a rate of 30 per cent will apply with the standard rate of 15 per cent applying on gross income less expenses and charitable donations ;

Concellation