TNAG-1725-FCO40-2438-Minutes-and-Hansards-of-the-Legislative-Council-of-Hong-Kong-1988 — Page 51

FCO40 Hong Kong Department Records 聯邦事務部香港部檔案 All

of

Tthe

<lcmuSecondly, that the Second Schedule of the Inland Revenue Ordinance belirevised into provide both a

}

yogre lower initial tax rate land sa more gradual progression-

working

through the various marginal rates as income increases aderonaw(43). Furthermore, the point at which the maximum 13081502 258 marginal rate will begins to apply willribe raised

bao by $10,000; adven

હું :

?

per cent

cepur

bšing tho034.6 907 bossre

Thirdly, I propose that the additional personal allowance be

be increased from $5,000 to $7,000 for a

for a 14. a single person, and from $10,000 to $14,000

married couple. Thus, the basic allowance plus the increased additional allowance will total $36,000 for

a single person, and $74,000 for a married couple; below these income levels there will be no liability

(43)

If the revision proposed is brought into law, the table in the Second Schedule of the Ordinance would be amended to:

For the year of assessment 1988-89 and each year thereafter:

Upon the first $10,000

Upon the next $10,000

5% 10%

15%

PROPOSED

PRESENT

le

38 6% 9$ 12%

15%

percent 154

18%

21%

20% 20% 25%

percent

25%

25%

I H

do

do

do

do

do

Upon the remainder

Examples of the effect on tax payable due to the revision of the marginal tax rates are given in Appendix F(3).

41

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