TNAG-1617-FCO40-2225-Executive-Council-of-Hong-Kong-memoranda-and-minutes-of-meet-1987 — Page 12

(ii) inserting at the end the following

"For the year of assessment

1987/88 and subsequent years

of assessment

- 10 per cent".

12.

For the purpose of calculating net chargeable

income under section 63C(1) of the principal Ordinance in

order to ascertain provisional salaries tax for the year of

assessment commencing on 1 April 1987 the references in

sections 12B(1)(b) and 2(b) of the principal Ordinance to

section 42B(1) shall be read as if they referred to section

42B(1) as amended by this Ordinance.

Explanatory Memorandum

The purpose of this Bill is to amend the Inland

Revenue Ordinance to give effect to the proposals in the

1987 Budget to -

(a) reduce the standard rate of tax from 17% to 16%

(b)

(clause 9);

combine the existing basic and additional

personal allowances to form a new basic allowance

and set the additional personal allowance at

$5,000 for single persons and $10,000 for married

persons. The new additional allowances will be

progressively reduced where an individual's

income exceeds in the case of a single person,

$34,000 and $70,000 in the case of a married