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
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
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.