XN000022-1974-02-27 — Page 6

.

5

Wednesday, February 27, 1974

TAX RELIEF PROPOSED

Several tax concessions were proposed by the Financial Secretary,

the Hon. Philip Haddon-Cave, this afternoon when he presented his budget

to the Legislative Council.

The first involves increasing the allowance for depreciation of

plant and machinery from one-fifth to one-quarter as from the year of

assessment 1974/75. This would cost the revenue $10 million.

He also intended to invite the Board of Inland Revenue to adopt

a new table of rates of depreciation to be effective for years of assessment

commencing on or after April 1 this year, at a cost to the revenue of not

less than $20 million in 1974/75.

The second proposal for relief involves raising the exemption

limit for estate duty on $200,000 to $300,000. This would result in a

possible reduction in reverue of more than $1 million in the coming financial

year.

Under the thirà proposal, transfers of shares, marketable securities

and property by way of outright donations to designated charitable institutions

will be exempt from stamp duty in the same way as bills of exchange which

constitute gifte are exempt. The loss to revenue is unknown, but the Financial

Secretary believed it would be small.

Mr. Haddon-Cave also proposed to abolish ad valorem stamp duty on

student loan documents.

The Financial Secretary did not propose to raise the allowance for

If the tle present 10 per cent allowance was the

charitable donatio

maximum that should be deducted from the personal assessment, earnings or

profits of donors.

16

aad van Shanna put kader dadahagkan penaging mat

Amanda APELINA,