XN000022-1997-03-12 — Page 54

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to increase the single parent allowance by 66.7 per cent, from $45,000 to $75,000.

to increase the disabled dependent allowance by 66.7 per cent, from $15,000 to $25.000.

to increase the maximum deduction for taxpayers claiming expenses in respect of fees for training courses attended at approved institutions by 66.7 per cent, from $12,000 to $20.000 a year.

"In drawing up my proposals on tax reductions. I have had to balance two considerations," Mr Tsang said.

"The first is the need for financial prudence. I am very conscious of our obligation to ensure that the SAR Government is in the strongest possible financial position on July 1.

"The second is the case for the people of Hong Kong to enjoy a fiscal dividend from the success they have created."

In deciding on these Salaries Tax concessions, Mr Tsang said he had stuck to the principle of targeting the groups that needed them most.

"In a caring community which respects traditional family values, the tax system should recognise the special difficulties faced by single parents or families caring for relatives, particularly those with a disability.

"The size of the concession for the training expenses is part of our effort to keep Hong Kong a premier centre for business by encouraging the work force to upgrade its professional and technical qualifications," he said.

The Financial Secretary told the Legislative Council that during his Budget consultations, he received a wide range of proposals on the marginal tax structure from members and professionals in the accounting and taxation fields.

"With the healthy revenue position forecast, both for 1997/98 and in the medium term, I agree that there is scope for me to revamp the structure.

"This will give added relief to middle-income salaries taxpayers, especially the 'sandwich class'. In framing my tax concessions, I have been very conscious of the needs of this particular group," he added.