Move to benefit the rich

PUBLISHED : Tuesday, 30 March, 1999, 12:00am
UPDATED : Tuesday, 30 March, 1999, 12:00am
 

Tax analysts have estimated that the average worker, with an annual income of about $133,320, will only receive a 10 per cent rebate of $86.


This contrasts dramatically with the upper echelon taxpay ers such as Hongkong Telecom chief executive Linus Cheung Wing-lam, Swire Group executive director Peter Sutch and Fi nancial Secretary Donald Tsang Yam-kuen.


Mr Cheung's annual salary is reported to be $9.35 million, which means he is entitled to a rebate of $140,000.


Mr Sutch's annual income is estimated at $12 million. He will receive a rebate of $180,000. As for Mr Tsang, he can expect a rebate of $36,864 as he makes $2.64 million a year.


Hong Kong enjoys one of the lowest tax rates in the world with a salary tax of 15 per cent and a corporate tax of 16 per cent.


Hong Kong's tax structure is unique in that only a very small sector of the working popula tion pays most of the SAR's in come tax.


About two million working people do not pay any income tax. A married couple with two children do not have to pay tax if their combined income is less than $23,000 per month.


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