Address components of salaries levy rather than urging a cut: finance chief
The financial secretary yesterday moved to dodge mounting pressure for a return of the salaries tax rate to the 2002-03 level, saying the public should address the four components of the levy instead of calling for a simple reversion.
The four components are personal allowances, the tax band, marginal tax rate and standard tax rate.
Instead of calling for a reversion to the 2002-03 level, Henry Tang Ying-yen said the public should comment on the four components, while underlining the government's readiness to treat each of the components independently.
'We will be able to achieve more profound targets by treating each of the four components independently. Our main intention is to provoke the public's thoughts,' he said.
A government official later said Mr Tang's remarks were aimed at more accurately gauging the public's views on the salaries tax level.
Expressing concerns about a simple reversion to the 2002-03 salaries tax regime, the official said this would mean, for the tax allowance, moving from the current level of HK$100,000 to HK$108,000.