XN000022-1987-05-06 — Page 23

WEDNESDAY, MAY 6, 1987

LEGISLATIVE EFFECTS TO TAX CONCESSIONS PROPOSED

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A BILL GIVING LEGISLATIVE EFFECTS TO FOUR CONCESSIONS IN PERSONAL TAXATION, TWO IN PROFITS TAX AND ONE IN PROPERTY TAX AND INTEREST TAX WAS INTRODUCED INTO THE LEGISLATIVE COUNCIL TODAY (WEDNESDAY).

MOVING THE SECOND READING OF THE INLAND REVENUE (AMENDMENT) BILL 1987, THE ACTING FINANCIAL SECRETARY, THE HON JOHN YAXLEY, POINTED OUT THAT CLAUSE OF THE BILL REDUCED THE STANDARD TAX RATE FOR BOTH PERSONAL TAXATION AND PROPERTY TAX AND INTEREST TAX FROM 17 PER CENT TO 16.5 PER CENT.

PROVISION FOR THE REDUCTION OF THE RATE OF TAX ON THE PROFITS OF CORPORATIONS FROM 18.5 PER CENT TO 18 PER CENT WAS CONTAINED IN CLAUSE 2 AND 7, HE ADDED.

THE AMENDMENTS TOOK EFFECT FROM THE YEAR OF ASSESSMENT ON APRIL 1, 1987.

AS REGARDS THE REFORM MEASURE. MR YAXLEY SAID PROPOSED AMENDMENTS WOULD APPLY TO ARRANGEMENTS ENTERED INTO AFTER THE GOVERNMENT'S ANNOUNCEMENT ON FEBRUARY 25, 1987.

+PAST ARRANGEMENTS WILL NOT BE AFFECTED, HE ADDED.

MR YAXLEY POINTED OUT THAT THE TIME APPORTIONMENT ASSESSMENT OF SALARIES TAX SET OUT IN CLAUSE 11 OF THE BILL WAS A TRANSITIONAL PROVISION.

+FURTHER CONSIDERATION IS BEING GIVEN BY THE ADMINISTRATION AND APPROPRIATE AMENDING LEGISLATION WILL BE INTRODUCED, HE EXPLAINED.

DEBATE ON THE BILL WAS ADJOURNED.

MOVE TO REVISE BUSINESS REGISTRATION FEES

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THE BUSINESS REGISTRATION (AMENDMENT) BILL WHCH PROVIDES FOR THE INCREASE IN THE ANNUAL BUSINESS REGISTRATION FEE WAS INTRODUCED INTO THE LEGISLATIVE COUNCIL TODAY (WEDNESDAY).

MOVING THE SECOND READING OF THE BILL. THE ACTING FINANCIAL SECRETARY, THE HON JOHN YAXLEY, SAID THAT THE AMENDMENT WAS SET OUT IN CLAUSE 2 OF THE BILL AND WAS DESCRIBED IN PARAGRAPH 118 OF THE 1987 BUDGET SPEECH.

THE BILL CAME INTO EFFECT ON APRIL 1, 1987 FOLLOWING THE SIGNING OF AN ORDER BY THE ACTING GOVERNOR, SIR DAVID AKERS-JONES, UNDER THE PUBLIC REVENUE PROTECTION ORDINANCE.

THE ADDITIONAL REVENUE YIELD RAISED BY THE REVISED FEE FOR 1987 IS ESTIMATED TO BE $20 MILLION.

DEBATE ON THE BILL HAS BEEN ADJOURNED.

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