XN000022-1990-03-07 — Page 41

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WEDNESDAY, MARCH 7, 1990

TO

SECONDLY, TO REDUCE THE RATES OF SALARIES TAX APPLICABLE THE FIRST TWO $10,000 BANDS OF NET CHARGEABLE INCOME FROM THREE PER CENT TO TWO PER CENT AND FROM SIX PER CENT TO FOUR PER CENT RESPECTIVELY.

SIR PIERS SAID THIS CONCESSION TAXPAYERS WITH LOWER INCOMES;

WOULD PARTICULARLY

BENEFIT

SECOND

THIRDLY, THAT THE CHILD ALLOWANCE FOR THE FIRST AND CHILD BE INCREASED FROM $13,000 TO $14,000, AND FROM $9,000 TO $10,000 RESPECTIVELY; AND

LASTLY, THAT THE BASIC RATE OF DEPENDENT PARENT ALLOWANCE BE INCREASED FROM $11,000 TO $12,000.

THE FINANCIAL SECRETARY SAID THESE CONCESSIONS WOULD TAKE EFFECT FROM THE YEAR OF ASSESSMENT COMMENCING APRIL 1, 1990.

"THEREFORE, THE FIRST OCCASION ON WHICH THEY WILL APPLY BE TO PROVISIONAL AND FINAL SALARIES TAX ASSESSMENTS FOR 1990-91, ALSO TO 1990-91 PERSONAL ASSESSMENTS," HE SAID.

WILL AND

SIR PIERS ESTIMATED THAT THE COST TO THE REVENUE IN 1990-91 WOULD BE $700 MILLION, AND $980 MILLION FOR A FULL YEAR.

DEPRECIATION ALLOWANCE ADJUSTED, EXEMPTION LEVEL RAISED

*

COMMERCIAL EXEMPTION

AN ADJUSTMENT IN THE DEPRECIATION ALLOWANCE FOR BUILDINGS AND, IN RELATION TO ESTATE DUTY, A RAISING OF THE LEVEL TO PROVIDE A FURTHER SPECIFIC RELIEF WERE PROPOSED IN THE BUDGET TODAY.

PIERS JACOBS, SAID COMMERCIAL BUILDING

HE

TO

THE FINANCIAL SECRETARY, THE HON SIR PROPOSED TO REDUCE THE WRITE OFF PERIOD OF A 50 YEARS BY INCREASING THE RATE OF THE ALLOWANCE TO TWO PER CENT,

HE POINTED OUT THAT COMMERCIAL BUILDINGS REBUILDING ALLOWANCE.

ATTRACTED AN ANNUAL

"WITH THE EXISTING ALLOWANCE SET AT 0.75 PER CENT IT TAKES SOME 133 YEARS TO WRITE OFF THE COST OF A COMMERCIAL BUILDING. THIS IS A LONG TIME," SIR PIERS SAID.

HE ESTIMATED THAT THE COST TO REVENUE OF THIS INCREASED ALLOWANCE WOULD BE $70 MILLION IN 1990-91, AND $85 MILLION IN A FULL YEAR.

ON ESTATE DUTY, THE FINANCIAL SECRETARY PROPOSED TWO CONCESSIONS. IN RECOGNITION OF THE EFFECT OF INFLATION ON ASSET VALUES HE PROPOSED TO RAISE THE ESTATE DUTY EXEMPTION LIMIT FROM $2 MILLION TO $4 MILLION.

/"IN ADDITION