TNAG-1607-FCO40-22122-Minutes-and-Hansards-of-the-Legislative-Council-of-Hong-Kong-1987 — Page 99

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Members will note my predecessor estimated in

1983 that the cost of introducing a

a scheme of

separate taxation for married couples would be

$285 million in the year of implementation, and

around $180 million in a full year.

The

increase to $400 million arises because of

inflation and adjustments to tax thresholds

since then.

The difference between the

implementation and full year costs given in

1983 arose because, at that time, adjustments

to tax thresholds applied not only to the

forthcoming fiscal year, but also to final tax

liabilities for the then current year. In view

of the fact that since 1985 such adjustments

have applied only to the

year, there would now be

forthcoming fiscal

no revenue loss

and

differential between the implementation

full year costs.

(WP2375A)/(4)