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(Source : Government Information Centre)

Legislative Council Passes Revenue (Allowances for Tax) Bill 2005

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The Legislative Council passed the Revenue (Allowances for Tax) Bill 2005 today (June 8). The Bill seeks to amend the Inland Revenue Ordinance (Cap. 112) to implement two concessionary measures relating to allowances under salaries tax and personal assessment announced in the 2005-06 Budget.

The first measure is to increase the child allowance from $30,000 per child to $40,000.

The second measure is to introduce two allowances for taxpayers maintaining parents/grandparents aged between 55 and 59. They will be granted a basic allowance of $ 15,000 a year, with an additional allowance of the same amount if their parents or grandparents are residing with them continuously.

Both measures will take effect from the 2005/06 year of assessment. Around 300,000 and 100,000 taxpayers will benefit from the first and second measures respectively. The measures are estimated to cost government revenue of $1.07 billion in a full year.

Ends/Wednesday, June 8, 2005

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