XN000022-1996-03-06 — Page 55

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Tax concessions to business firms

The Financial Secretary, Mr Donald Tsang, proposes to offer three tax concessions which should benefit business firms directly. They are:

to halve the ad valorem fees on company registration from the current level of 0.6 per cent to 0.3 per cent.

to double the maximum average monthly turnover levels below which businesses are exempt from payment of business registration fees from $15,000 to $30,000, for the sales of goods.

to raise the exemption level by 150 per cent, from $4,000 to $10,000. where the profits of the business are mainly derived from the sale of services.

"I believe that these concessions will make a direct contribution to reducing the cost of capital, as well as the operating costs of small businesses." Mr Tsang said.

These two measures will cost $190 million in 1996-97 and $930 million up to 1999-2000. They will come into effect on April 1.

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FS proposes wide range of personal tax concessions

The Financial Secretary, Mr Donald Tsang. proposes a wide range of concessions on personal taxation which will reduce the tax burden for some 95 per cent of salaries taxpayers.

These concessions are:

To increase the basic allowance from $79,000 to $90,000 and the married person's allowance from $158,000 to $180,000. The allowances will rise by 14 per cent. well above the rate of inflation in 1995.

To increase the allowance for the first and second child by 11 per cent. from $22.000 to $24.500.