XN000022-1975-11-08 — Page 2

SATURDAY, NOVEMBER 8, 1975

MORE PEOPLE PAY SALARIES TAX THIS YEAR

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MORE PEOPLE ARE CONTRIBUTING TO HONG KONG'S REVENUE IN THE FORM OF SALARIES TAX IN THE CURRENT FINANCIAL YEAR.

THIS IS INDICATED BY THE NUMBER OF ACTIVE FILES FOR PERSONS LIABLE TO SALARIES TAX WHICH STOOD AT 167,030 ON MARCH 31, 1975, REPRESENTING AN INCREASE OF 45 PER CENT OVER THE PREVIOUS YEAR.

THE INCREASE, ACCORDING TO A SPOKESMAN FOR THE INLAND REVENUE DEPARTMENT, WAS MAINLY ATTRIBUTABLE TO THE CONTINUED RISING TREND OF SALARIES WHICH HAD BROUGHT MORE PEOPLE INTO THE TAXABLE BRACKET.

THE NUMBER OF CASES WHERE TAX HAD BEEN CHARGED ROSE FROM 63,825 IN 1970-71 TO 144,993 IN 1974-75, AND DURING THE LAST FINANCIAL YEAR THE NET TAX ASSESSED AMOUNTED TO A RECORD OF $428.7 MILLION AS COMPARED WITH $306.2 MILLION IN THE PREVIOUS YEAR AN INCREASE OF 40 PER CENT.

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+THE INCREASE IN NET TAX ASSESSED REFLECTS THE CONTINUED RISE IN THE LEVEL OF EMOLUMENTS BEING PAID TO EMPLOYEES AS A RESULT OF INFLATION, THE SPOKESMAN EXPLAINED.

HOWEVER, HE NOTED THAT THE FIGURES WERE NOT STRICTLY COMPARABLE BECAUSE OF THE INTRODUCTION OF A PROVISIONAL TAX SYSTEM. +THE FIGURE FOR 1974-75 INCLUDES BOTH THE PROVISIONAL TAX FOR 1974-75 AND THE ADJUSTMENT IN THE FINAL ASSESSMENT FOR 1973-74, WHEREAS IN THE EARLIER YEAR, WHICH WAS ALSO AFFECTED BY THE CHANGE. THE IMPACT WAS REDUCED BY THE TRANSITIONAL RELIEF GIVEN IN THAT YEAR, HE SAID.

DURING THE YEAR 1974-75, THE AMOUNT OF SALARIES TAX COLLECTED WAS $413.4 MILLION COMPARED TO $283.2 MILLION IN 1973-74.

ONE NOTABLE POINT SHOWN BY A BREAKDOWN OF SALARIES TAX ASSESSMENTS FOR THE YEAR 1973-74 IS THAT 68.8 PER CENT OF THE TOTAL TAXPAYERS, FELL WITHIN THE INCOME RANGE OF $1,000 TO $3,000 PER MONTH.

WHEN CLASSIFIED ACCORDING TO MARITAL AND FAMILY STATUS, IT SHOWS THAT SINGLE PERSONS WITHOUT CHILDREN FORM THE LARGEST GROUP OF SALARIES TAXPAYERS. AS A GROUP, THEY PAID OVER $42 MILLION IN 1973-74.

DURING THE SAME YEAR, 6,264 PERSONS PAID THEIR TAX AT THE STANDARD RATE OF 15 PER CENT ON TOTAL INCOME LESS CHARITABLE DONATIONS BUT WITHOUT ANY DEDUCTION FOR PERSONAL ALLOWANCES.

/+IT IS INTERESTING

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