XN000022-1990-03-07 — Page 42

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WEDNESDAY, MARCH 7, 1990

"IN ADDITION, I PROPOSE TO REPLACE THE PRESENT SCHEDULE OF RATES WITH A NEW SCHEDULE SCALED FROM SIX PER CENT ON ESTATES BETWEEN $4 MILLION AND $4.5 MILLION TO 18 PER CENT ON ESTATES OVER

$5 MILLION," HE SAID.

DUTY ALL DEATH

SIR PIERS ALSO PROPOSED TO EXEMPT FROM ESTATE BENEFITS FROM RETIREMENT FUNDS APPROVED BY THE COMMISSIONER OF INLAND REVENUE UNDER SECTION 87A OF THE INLAND REVENUE ORDINANCE.

TO

"THIS WILL REDUCE HARDSHIP THAT MIGHT OTHERWISE BE CAUSED DEPENDENTS OF DECEASED EMPLOYEES. I ESTIMATE THE OVERALL COST OF THESE CONCESSIONS TO BE $50 MILLION, HE SAID.

ON TAX CONCESSIONS FOR UNIT TRUSTS AND MUTUAL FUNDS, THE FINANCIAL SECRETARY SAID HE HAD DECIDED IN FAVOUR OF THE PROPOSAL, (A) TO ALTER THE DEFINITION OF "SECURITIES" IN THE INLAND REVENUE ORDINANCE SO THAT A WIDER RANGE OF PROFITS MADE BY AUTHORISED UNIT TRUSTS WOULD BE EXCLUDED FROM PROFITS TAX. AND (B) TO CONSIDER WHETHER THERE WAS A CASE ΤΟ EXEMPT MUTUAL FUND CORPORATIONS FROM PROFITS TAX IN A SIMILAR MANNER TO UNIT TRUST.

"IT IS MY INTENTION TO INTRODUCE SUITABLE LEGISLATION INTO THIS COUNCIL AS SOON AS POSSIBLE TO AMEND THE INLAND REVENUE ORDINANCE ACCORDINGLY," SIR PIERS SAID.

HE ESTIMATED THE COST OF THESE TWO CONCESSIONS TO BE $25

MILLION.

PUBLIC REVENUE PROTECTION ORDERS.SIGNED

BUDGET PROPOSALS ON DUTIABLE COMMODITIES, FIRST

REGISTRATION

TAX AND VEHICLE AND DRIVING LICENCE FEES CAME INTO EFFECT TODAY UNDER PUBLIC REVENUE PROTECTION ORDERS SIGNED BY THE GOVERNOR.

THE FINANCIAL SECRETARY, THE HON SIR PIERS JACOBS, SAID THIS WHEN PRESENTING HIS BUDGET TO THE LEGISLATIVE COUNCIL.

"UNDER SIMILAR AUTHORITY, MY OTHER PROPOSALS ON RATES, BUSINESS AND COMPANIES REGISTRATION FEES, BANK AND DEPOSIT-TAKING COMPANIES REGISTRATION AND LICENCE FEES, AND BERTHING FEES WILL INTO EFFECT ON APRIL 1, 1990," SIR PIERS ADDED.

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