XN000022-1997-04-23 — Page 3

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Firm chosen to audit the Exchange Fund of HK

In accordance with the "Agreed Minute on the Question of the Arrangements for the Transfer of the Exchange Fund of Hong Kong", the British and Chinese sides have, through a tender process, jointly chosen Price Waterhouse to audit the statements of assets and liabilities of the Exchange Fund of Hong Kong as at March 31, 1997 and June 30, 1997.

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Legislation on budget revenue to be introduced into LegCo

Bills which are necessary to implement the 1997-98 Budget revenue proposals will be gazetted on Friday (April 25).

There will altogether be six bills.

The Inland Revenue (Amendment) Bill 1997 seeks to increase the salaries tax allowances and the maximum deduction for training expenses as announced in the Budget. It also seeks to rationalise the salaries tax marginal tax structure.

The Inland Revenue (Amendment) (No. 2) Bill 1997 seeks to provide for the deduction of foreign withholding tax paid by a company on its income in the assessment of profits, irrespective of whether the company is controlled or managed in Hong Kong. The opportunity is also taken to amend the Inland Revenue Ordinance in order to improve the operation of the Board of Review (Inland Revenue) and other aspects of the legislation.

The Stamp Duty (Amendment) Bill 1997 seeks to adjust stamp duty on property transactions to bring relief to home buyers of flats with values up to $4 million.

The Estate Duty (Amendment) Bill 1997 seeks to increase the exemption level of estate duty from $6.5 million to $7 million and to adjust the marginal duty thresholds correspondingly.