XN000022-1989-03-01 — Page 32

WEDNESDAY, MARCH 1, 1989

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HE ESTIMATED A $40 MILLION COST TO REVENUE IN 1989-90 AND MILLION IN A FULL YEAR.

$100

AND

PROVISIONAL

THE NEW STANDARD RATE, HE SAID, WOULD APPLY TO PROVISIONAL

BUSINESSES, FINAL ASSESSMENTS ON UNINCORPORATED AND FINAL PROPERTY TAX ASSESSMENTS, FOR 1989-90.

AND TO

INTEREST TAX TO BE ABOLISHED

THE

FINANCIAL SECRETARY, THE HON PIERS JACOBS, TOLD THE LEGISLATIVE COUNCIL TODAY (WEDNESDAY) THAT HE PROPOSED TO COMPLETELY ABOLISH INTEREST TAX FROM THE YEAR OF ASSESSMENT STARTING APRIL 1, 1989.

MR JACOBS SAID IN HIS BUDGET SPEECH THAT EXEMPTIONS FROM INTEREST ON INTEREST WITHHOLDING TAX WERE GIVEN IN 1982 AND 1983 TO FOREIGN CURRENCY DEPOSITS AND HONG KONG DOLLAR DEPOSITS WHERE THESE WERE HELD WITH FINANCIAL INSTITUTIONS.

"THIS HAS RESULTED IN THE YIELD FROM THIS TAX DECLINING SIGNIFICANTLY," HE SAID.

TAX

MR JACOBS SAID HE WAS PROPOSING THE ABOLITION OF INTEREST TO SIMPLIFY THE TAXATION SYSTEM BECAUSE PRESENT DISCRIMINATION PAID BY BETWEEN INTEREST PAID BY FINANCIAL INSTITUTIONS AND INTEREST OTHER ENTITIES WAS SAID TO HAVE INHIBITED THE DEVELOPMENT OF HONG KONG.

—

HE ESTIMATED THE OVERALL COST OF THIS $140 MILLION IN 1989 . 90.

CONCESSION

TO BE SOME

IMPLEMENTATION OF REVENUE PROPOSALS

* *

BUDGET

OF

PROPOSALS FOR THE BUSINESS REGISTRATION FEE, DEPOSIT-TAKING COMPANY LICENCE AND REGISTRATION FEES, DUTIABLE COMMODITIES, AND VEHICLE AND DRIVING LICENCE FEES WERE THE SUBJECT

SIGNED BY THE GOVERNOR YESTERDAY PUBLIC REVENUE PROTECTION ORDERS (TUESDAY).

SAID THIS WHEN

THE FINANCIAL SECRETARY, THE HON PIERS JACOBS, PRESENTING HIS BUDGET IN THE LEGISLATIVE COUNCIL TODAY (WEDNESDAY).

/DURING THE