XN000022-1984-05-30 — Page 14

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WEDNESDAY, MAY 30, 1984

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+BUT IT WAS A YEAR OF INTENSIVE PREPARATION FOR A SIGNIFICANT MOVE UP-MARKET, THAT IS TO SAY TOWARDS THE INTRODUCTION OF THE POLYTECHNIC'S FIRST FIVE DEGREE COURSES IN OCTOBER LAST YEAR,+ HE SAID.

THESE DEGREE COURSES IN COMPUTING STUDIES, ELECTRONIC AND MECHANICAL ENGINEERING, SOCIAL WORK AND COMBINED STUDIES IN MATHEMATICS AND SCIENCE HAD BEEN MANY TIMES OVER-SUBSCRIBED, MR CHEN SAID.

MR CHEN SAID THAT 90 PER CENT OF LAST YEAR'S GRADUATES WERE EITHER IN FULL-TIME EMPLOYMENT OR WERE PURSUING FURTHER STUDIES BY OCTOBER 1983.

+THE REMAINING 10 PER CENT HAD NOT FOUND SUITABLE EMPLOYMENT AT THAT TIME, AND THIS WAS THE HIGHEST SHORT-TERM UNEMPLOYMENT PERCENTAGE IN THE 11-YEAR HISTORY OF THE POLYTECHNIC,+ HE SAID.

MR CHEN ALSO SAID THAT MOST OF THE PREPARATORY WORK FOR LAUNCHING THE NEW CITY POLYTECHNIC OF HONG KONG IN JANUARY OF THIS YEAR HAD BEEN DONE IN THE PERIOD COVERED BY THE REPORT.

INLAND REVENUE BILL EXPLAINED

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THE INLAND REVENUE (AMENDMENT) BILL 1984, INTRODUCED INTO THE LEGISLATIVE COUNCIL TODAY, SEEKS TO GIVE LEGISLATIVE EFFECT TO SOME PROPOSALS MADE IN THIS YEAR'S BUDGET SPEECH, THE FINANCIAL SECRETARY, THE HON SIR JOHN BREMRIDGE, SAID.

THESE PROPOSALS ARE TO:

*

INCREASE, FROM THE YEAR OF ASSESSMENT 1984-85, THE STANDARD TAX RATE FROM 15 PER CENT TO 17 PER CENT AND THE CORPORATE PROF ITS TAX RATE FROM 16.5 PER CENT TO 18.5 PER CENT.

* PROVIDE, FROM APRIL 1, 1984, MEASURES TO MINIMISE

POTENTIAL LOSSES OF PROFITS TAX REVENUE (FOLLOWING THE REMOVAL OF THE INTEREST TAX CHARGE FROM INTEREST ON DEPOSITS WITH FINANCIAL INSTITUTIONS), BY STIPULATING THE CONDITIONS WHICH MUST BE COMPLIED WITH IN ORDER TO QUAL IFY INTEREST PAYMENTS AS DEDUCTIBLE EXPENSES IN THE COMPUTATION OF ASSESSABLE BUSINESS PROFITS.

* EFFECTIVE FROM THE SAME DATE, BRING TO CHARGE TO PROFITS

TAX SUMS RECEIVED BY OR ACCRUING BY WAY OF INTEREST TO BUSINESSES CARRIED ON IN HONG KONG. THESE SUMS HAD PREVIOUSLY ESCAPED THE TAX NET, EITHER BECAUSE THE DEPOSITS WERE DENOMINATED IN A FOREIGN CURRENCY. OR BECAUSE OF THE APPLICATION OF THE ARTIFICIAL +PROVISION OF CREDIT TEST.

/SIR JOHN