XN000022-1973-04-19 — Page 4

3

Thursday, April 19, 1973

BILL TO GIVE EFFECT TO NEW TAX PROPOSALS

Personal And Wife's Allowances To Be Raised

An amending bill, aimed at putting into effect certain tax proposals

made by the Financial Secretary in his 1973 Budget Speech, will be introduced

into the Legislative Council shortly.

If enacted, the Inland Revenue (Amendment) (No. 2) Bill 1973 will:

increase the personal and wife's allowances from $7,000 to $10,000;

increase the allowance for the first child from $2,000 to $3,000, for the second child from $2,000 to $2,500 and for the third child from $1,000 to $1,500. The maximum total allowance for children will be increased from $9,500 to $11,500;

extend the child allowance in respect of children of any age who are not employable because of mental or physical handicap;

abolish the lower income relief, and allowances for life insurance premia, contributions to Widows and Orphans Pensions Schemes, for working wives, and for independent parents.

The amending legislation also provides new rates for salaries tax

and personal assessment.

Under the rates proposed, tax will be charged at five per cent upon

the first $10,000 rising in scale by five per cent on each succeeding $10,000

up to a maximum rate of 30 per cent on any amount above $50,000. The percentage

charged on gross income (less expenses and charitable donations) will still

not exceed 15 per cent.

A saving provision provides that the abolished allowances remain effective

for years of assessment prior to that commencing on April 1, 1973.

-

0

144