TNAG-2470-FCO40-3594-Budget-of-Hong-Kong-1992 — Page 89

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4

tax cuts abolish taxes on non-luxury items

the cost of living for ordinary families,

tickets. And the duty on

bus companies,

9.

Other

which affect

soft drinks namely

diesel fuel

and

cinema

abolished is

for franchised

helping to keep bus fares down.

10.

There will be

modest

increases in profits tax

(+18) and

rates the

(+0.5%),

which will not damage Hong

Kong firms'

competitiveness.

[The

effect of the rates

increase on inflation

is negligible, at 0.14% on CPI (A).

It equals $43 a month extra for average private flat, $15 a

These

and

other revenue

additional $3.8 billion in a full

month

for

average

HA

flat.]

measures

will raise an

year.

11.

The

Budget's

five tax

concessions

will

dost

$2.1 billion.

The net additional revenue, therefore is

$1.7 billion in a full year.

(HIGH-L)

90'd

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'S I'D

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