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  Salaries Tax 

92.    Some political parties and Members of this Council have suggested that we should shelve the second phase of salaries tax adjustments proposed in the 2003?4 Budget, or allow the salaries tax rates and bands to revert to their pre-2003?4 levels.  I know that members of the public hope the Government will relieve their tax burden.  However, the suspension of the second phase of adjustments would cost the Government $3.3 billion in a full year.  As the fiscal deficit has yet to be eliminated, I believe it is inappropriate to adjust the salaries tax rates and bands at the current juncture.  Nevertheless, to alleviate the burden on taxpayers, I have just proposed that those maintaining parents or grandparents aged between 55 and 59 should be granted allowances.  It is estimated that around 100 000 taxpayers will benefit from this measure, which will cost $450 million a year.  I have also proposed to increase the allowance for children.  Around 300 000 taxpayers will benefit from this measure, which will cost about $620 million a year.  We will introduce the relevant bill into this Council for deliberation as soon as possible.



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2004 | Important notices
Last revision date : 16 March, 2005