HONG KONG URBAN COUNCIL
introduce separate assessment, taxpayers within this bracket would not save much tax because they would not be entitled to allowance anyway as shown on the schedule. But taxpayers of lower bracket, those who feel most of the pinch of high cost living, will be benefitted. From the Government's point of view, separate assessment only affect Government's levy on less than 50% of the final tax, the amount of reduction of levy therefore will be comparatively very small.
It is in the best interest of Hong Kong that social stability should be maintained, and in order to achieve this end, one of the expeditious ways is to introduce separate assessment of the incomes of husband and wife to relieve the married couples of lower bracket incomes of their heavy burden in the light of the high cost of living resulted from inflation.
It is all very well to say that Hong Kong is a free port, social welfare should not be taken care of by the Government like U.K. But when one looks at the community of Hong Kong which is suffering from inflation of over 14% per year, and most of the married women have to go out to work to help to maintain the household, one will agree that this joint assessment system creates social injustice which could not be overlooked or ignored.
This joint assessment has certain ill effect on the young generation, because it would encourage youngsters to cohabit together without celebrating legal marriage, by so doing they are not husband and wife and therefore their incomes are not liable to be assessed jointly and certain amount of tax could be saved.
Since 1979 I have advocated that the Government should introduce separate assessment of incomes of husband and wife in line with the U.K. measure so that the working married couples will not be aggrieved by their solemnization of the marriage. It is not uncommon nowadays that the young men and women do cohabit together without celebrating any marriage. Therefore if the Government still maintains that the incomes of lawful husband and wife should be assessed jointly, it will create a situation that the virtuous couples who are married lawfully will be punished with heavier levy whilst the wicked couples who live in sin will be awarded with smaller levy.
Therefore I take this opportunity to urge this Council to stand behind me to appeal to the Government that the joint assessment of the incomes of husband and wife be abolished so that the income of a wife could be assessed separately to maintain social justice in line with U.K. system.
Sir, I support the motion.
Page 188
STATISTICS OF SALARIES TAX ASSESSMENTS FOR THE 1979-80 YEAR BY FAMILY STATUS*
Family Status No. of Taxpayers Total Income (HK$) Personal Allowance (HK$) Married Allowance (HK$) Additional Allowance (HK$) Child Allowance (HK$) Final Tax (HK$) Average Tax per Taxpayer (HK$) Single 202,902 5,361,582,205 Married 0 31,504 1,747,040,425 392,930,000 1 31,638 2,033,592,064 394,892,500 889,61 2 30,162 2,190,262,654 375,895,000 14,196 3 12,417 925,771,771 4,359 4 3,928 289,072,252 155,140,000 1,111 49,097,500 155,140,000 61,985,283 5 1,017 67,655,636 34,200,000 224 11,400,000 34,200,000 19,637,826 6 197 15,376,085 40 Over 6 18 6,529,788 2,462,500 17 1,012,500 2,462,500 1,012,500 Standard Rate 19,593 4,424,627,458 6,962 TOTAL 335,912 17,174,107,438 3,948,030,000* Based on income for 1979-80. Included in the statistics are those persons not measured to tax in respect of their earnings in the 1979-80 year (because their allowances exceeded their emoluments) but on whom Provisional Salaries Tax was assessed in respect of estimated emoluments of the 1980-81 fiscal year.
Page 189
Page 116 of 146
188
HONG KONG URBAN COUNCIL
introduce separate assessment, taxpayers within this bracket would not save much tax because they would not be entitled to allowance anyway as shown on the schedule. But taxpayers of lower bracket, those who feel most of the pinch of high cost living, will be benefitted. From the Government's point of view, separate assessment only affect Government's levy on less than 50% of the final tax, the amount of reduction of levy therefore will be comparatively very small.
It is in the best interest of Hong Kong that social stability should be maintained, and in order to achieve this end, one of the expeditious ways is to introduce separate assessment of the incomes of husband and wife to relieve the married couples of lower bracket incomes of their heavy burden in the light of the high cost of living resulted from inflation.
It is all very well to say that Hong Kong is a free port, social welfare should not be taken care of by the Government like U.K. But when one looks at the community of Hong Kong which is suffering from inflation of over 14% per year, and most of the married women have to go out to work to help to maintain the household, one will agree that this joint assessment system creates social injustice which could not be overlooked or ignored.
This joint assessment has certain ill effect on the young generation, because it would encourage youngsters to cohabit together without celebrating legal marriage, by so doing they are not husband and wife and therefore their incomes are not liable to be assessed jointly and certain amount of tax could be saved.
Since 1979 I have advocated that the Government should introduce separate assessment of incomes of husband and wife in line with the U.K. measure so that the working married couples will not be aggrieved by their solemnization of the marriage. It is not uncommon nowadays that the young men and women do cohabit together without celebrating any marriage. Therefore if the Government still maintains that the incomes of lawful husband and wife should be assessed jointly, it will create a situation that the virtuous couples who are married lawfully will be punished with heavier levy whilst the wicked couples who live in sin will be awarded with smaller levy.
Therefore I take this opportunity to urge this Council to stand behind me to appeal to the Government that the joint assessment of the incomes of husband and wife be abolished so that the income of a wife could be assessed separately to maintain social justice in line with U.K. system.
Sir, I support the motion.
STATISTICS OF SALARIES TAX ASSESSMENTS FOR THE 1979-80 YEAR BY FAMILY STATUS*
Family Status
No. of
Total Income
No. of
30%
Married
Personal
Allowance
Allowance Wife
Additional
Allowance
Child
Allowance
Taxpayers Taxpayers
Persons
Marital Child
Having
Wife
Income
(HKS)
(HK$)
(HK$)
Final Tax
Average
1 ax per
1axpayer
(HK$)
Page 116 of 146
HONG KONG URBAN COUNCIL
189
14.42
0.26
0.13
0.07
98,648,111
7.73
376,578,178
108,399,981
24,091,137
114,726,253
136,630,077
54,694,404
15,370,715
3,368,137
8 99
3,626
10.70
4.28
1.20
4,530
4,405
3.913
0.26
3,693
5,592,985
2,427,548
352,246 808.069
0.06
4,102
0.03
4,349
4.415,705,074
662,347,715
51.87
33,805
!!!!
TOTAL
335912
100.00
65096
17,174,107,438
3,948,030,000
1,382,830,000
1,062,901,772
670,719,777
382,222,000
26.157.475
9,701.246,414
1,276,964,690
100.00
3,801
Single
0
202 902
60.40
5,361,582,205
1
1495
0.44
61,400,994
2
730
0.22
33,482,200
3 or Mure
353
0.11
17,713,906
Married
0
31504
9.38
18499
1,747,040,425
392.930.000
1
31 638
9.42
889 61
2,033,592,064
394,892,500
Z
30 162
8.98
14 196
2,190,262,654
375.895.000
3
12417
3.70
4359
925,771,771
4
5
912 3928
1.17
1111
289,072,252
155,140,000
49,097,500
155,140,000
61,985,283
0.27
224
67,655,636
11,400,000
Q
197
0.06
40
15,376,085
Over 6
18
0.02
17
6,529,788
2,462,500
1,012,500
49,097,500
11,400,000
2,462,500
1,012,500
19,637,826
4.560,000
985.000
405,000
Standard Rate
19 593
5.83
6962
4,424,627,458
* Based on income for 1979-80. Included in the statistics are those persons not measured to tax in respect of their earnings in the 1979-80 year (because their allowances exceeded their emoluments) but on whom Provisional Salaries Tax was assessed in respect of estimated emoluments of the 1980-81 fiscal year.
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