XN000022-1994-03-02 — Page 36

24

WEDNESDAY, MARCH 2, 1994 ·

THE BASIC ALLOWANCE BE INCREASED FROM $56,000 TO $72,000 AND THE MARRIED PERSON ALLOWANCE BE RAISED FROM

TO $112,000 $144,000;

THE ALLOWANCE FOR THE FIRST AND SECOND CHILD BE RAISED BY NEARLY 18 PER CENT, FROM $17,000 TO $20,000;

THE SINGLE-PARENT ALLOWANCE BE INCREASED BY ABOUT 19 PER CENT, FROM $27,000 TO $32,000; AND,

*

THE BASIC DEPENDENT PARENT ALLOWANCE BE RAISED BY NEARLY PER CENT, FROM $17,000 TO $20,000.

18

SIR HAMISH SAID HE WAS ALSO CONSCIOUS OF THE COMMUNITY'S DESIRE

THEIR ENCOURAGE FAMILIES TO PROVIDE CARE AND SUPPORT FOR

ELDERLY

ΤΟ

MEMBERS.

NOTING THAT THIS GOAL WAS UNDERLINED BY THE GOVERNOR IN HIS POLICY ADDRESS LAST YEAR, SIR HAMISH SAID: "I PROPOSE, THEREFORE, THAT A DEPENDENT GRANDPARENT ALLOWANCE BE INTRODUCED TO COVER DEPENDENT GRADPARENTS RESIDENT IN HONG KONG FOR WHOM NO DEPENDENT PARENT ALLOWANCE HAS BEEN CLAIMED. I ESTIMATE THAT THIS MEASURE WILL ASSIST 10,000 TAXPAYERS.

SIR HAMISH ADDED THAT THE PROPOSED CONCESSION WOULD HAVE THE FOLLOWING MEANING TO THE AVERAGE FAMILY:

* A SINGLE-INCOME FAMILY OF FOUR WILL HAVE TO EARN MORE THAN $184,000 A YEAR BEFORE PAYING ANY TAX. AT PRESENT, THEY WOULD BE LIABLE TO TAX WHEN THEIR ANNUAL EARNINGS EXCEEDED $146,000;

*

A SIMILAR HOUSEHOLD, WITH TWO DEPENDENT PARENTS OR GRANDPARENTS, WILL HAVE TO EARN MORE THAN $224,000 BEFORE PAYING ANY TAX. AT PRESENT, THEY WOULD BE LIABLE TO PAY TAX WHEN THEIR ANNUAL EARNINGS EXCEEDED $180,000.

SIR HAMISH SAID HIS PROPOSALS FOR CONCESSIONS ON PERSONAL TAXATION WENT FURTHER THAN THE ALLOWANCES,

HE SAID: "LAST YEAR, I MADE ADJUSTMENTS TO THE MARCINAL TAX BANDS, WHICH BENEFITED THE SANDWICH CLASS. I BELIEVE WE CAN MAKE A FURTHER MAJOR ADJUSTMENT THIS YEAR TO REDUCE THE NUMBER OF SALARIES TAXPAYERS WHO HAVE TO PAY THE STANDARD RATE OF 15 PER CENT.

PER

**I PROPOSE THAT THE TOP MARGINAL TAX RATE BE REDUCED FROM 25 CENT TO 20 PER CENT. ONCE AGAIN, THE SANDWICH CLASS WILL BE THE PRINCIPAL BENEFICIARIES."

UNDER THIS PROPOSAL, AN UNMARRIED TAXPAYER WILL HAVE TO EARN AT LEAST $444,000 BEFORE PAYING TAX AT THE STANDARD RATE, COMPARED WITH $258,000 AT PRESENT; AND A SINGLE-INCOME FAMILY OF FOUR WILL HAVE TO EARN AT LEAST $892,000 BEFORE PAYING TAX AT THE STANDARD RATE, COMPARED WITH $483,000 AT PRESENT.

NOTING THAT THESE CONCESSIONS WERE PROPOSED TO TAKE EFFECT FROM THE YEAR OF ASSESSMENT STARTING ON APRIL 1 1994, SIR HAMISH SAID THEY WOULD COST $3.2 BILLION IN 1994-95 AND $20.7 BILLION UP TO 1997-98.

/BEFORE COMING