TNAG-1641-FCO40-2288-Budget-of-Hong-Kong-1987 — Page 211

6.2.87

Personal Taxation

123.

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61

For personal taxation, I propose

First, to reduce the standard rate from 17% to

16 1/2%.

Second, to combine the existing basic and

additional personal allowances to form the new

basic allowance, and to set the additional

personal allowance at $5,000 for single

persons, and $10,000 for married persons.

Taken together, the new basic allowance plus

the additional personal allowance will total

$34,000 for single persons and $70,000 for

married couples; below these income levels

there will be no liability to tax.

The new

allowances at their maximum levels will be

nearly 17% higher than the present combined

basic and additional personal allowances (47).

(47)

Under the provisions of section 42B(1) of the Ordinance, the present basic and additional allowances are

1

Basic Allowance

Additional Allowance

Total

Single Married

$20,500 $41,000

$ 8,500

$19,000

$29,000 $60,000

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