XN000022-1990-05-02 — Page 7

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WEDNESDAY, MAY 2, 1990

INCREASE IN FEES PAYABLE BY BANKS AND DTC'S

THE BANKING (AMENDMENT) (NO. 3) BILL 1990, WHICH SEEKS TO GIVE LEGISLATIVE EFFECT TO THE PROPOSALS IN THIS YEAR'S BUDGET TO INCREASE WITH EFFECT FROM APRIL 1, 1990 THE FEES PAYABLE BY BANKS, RESTRICTED LICENCE BANKS AND DEPOSIT-TAKING COMPANIES, WAS INTRODUCED INTO THE LEGISLATIVE COUNCIL TODAY (WEDNESDAY).

MOVING THE SECOND READING OF THE BILL, THE FINANCIAL SECRETARY, THE HON SIR PIERS JACOBS, SAID SUCH FEES WERE LAST REVISED IN 1989.

"IN THE CASE OF RESTRICTED LICENCE BANKS AND DEPOSIT-TAKING COMPANIES, THE INCREASE WILL HELP TO REDUCE THE UNDER-RECOVERY OF GOVERNMENT SUPERVISION COSTS INCURRED.

"THE INCREASES WILL YIELD AN ESTIMATED ADDITIONAL $30 MILLION IN THE CURRENT FINANCIAL YEAR, HE SAID.

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DEBATE ON THE BILL WAS ADJOURNED.

BILL TO GIVE EFFECT TO PROPOSED TAXATION CONCESSIONS

THE INLAND REVENUE (AMENDMENT) (NO. 2) BILL 1990, WHICH SEEKS TO GIVE LEGISLATIVE EFFECT TO THE TAXATION CONCESSIONS PROPOSED IN THIS YEAR'S BUDGET, WAS INTRODUCED INTO THE LEGISLATIVE COUNCIL TODAY (WEDNESDAY).

THE

INCLUDED INCREASED

MOVING THE SECOND READING OF THE BILL, THE FINANCIAL SECRETARY, HON SIR PIERS JACOBS, SAID THE TAX CONCESSIONS ZERO-RATING THE CLAWBACK ON ADDITIONAL PERSONAL ALLOWANCES, CHILD AND DEPENDENT PARENT ALLOWANCES AND A REDUCTION IN THE FIRST TWO MARGINAL RATE BANDS OF SALARIES TAX AND PERSONAL ASSESSMENT.

"THIS BILL ALSO PROVIDES FOR AN INCREASE IN THE RATE OF ANNUAL COMMERCIAL REBUILDING ALLOWANCE FROM 0.75 PER CENT TO TWO PER CENT.

"THE COST TO GENERAL REVENUE OF IMPLEMENTING THESE PROPOSALS IS ESTIMATED TO BE APPROXIMATELY $770 MILLION IN THE CURRENT

ANNUM THEREAFTER AT FINANCIAL YEAR, AND $1,065 MILLION PER

PRESENT LEVELS OF CHARGEABLE INCOME," SIR PIERS SAID.

DEBATE ON THE BILL WAS ADJOURNED.

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