TNAG-0761-FCO40-965-Budget-of-Hong-Kong--1978-1979-1978 — Page 97

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G

Commissioner of Inland Revenue, on the basis of his

experience of a 2% differential between Business Profits

Tax and Corporation Profits Tax, reckons that a differential

of 21% is acceptable technically. Politically, here we

shall please the little man (freed of stamp duty on, for

example, mortgages and cheques) but also the financial

community. Conceivably elsewhere the slight increase in

Profits Tax may provide a talking point of some use.

18. The net effect of these proposals should not

affect my present estimate of the budgetted deficit

by

more than a few million dollars.

F.S. 27.1.78.