HK Financial Secretary Tang proposes lower salary tax rate regime starting from tax year 2006/2007 as follows:

Marginal tax bands				Marginal tax rate (%)
Net chargeable income				Present	Proposed
				2005/06	2006/07
First HK$30,000				2%	2%
Next HK$30,000				8%	7%
Next HK$30,000				14%	13%
Remainder				20%	19%
Standard Rate				16%	16%

To extend the limit for the deduction for home loan interest by three years to a total of 10 years.

To reduce the levy on trading in securities, futures and options contracts by 20%.

To impose “green” taxes in accordance with the Polluter Pays principle and to implement product responsibility schemes to promote recovery and recycling of tyres and to reduce the use of plastic bags.

To exempt electric vehicles from first registration tax for a further three years.

Broadening the Tax Base

To consider introducing a Goods and Services Tax (GST) to develop a more stable source of revenue.

To consider implementing various measures to reduce the impact of GST on our people.

To announce detailed proposals and launch a public consultation in the middle of this year.

 

2006/2007財政預算案-稅務建議

財政司司長唐英年建議減低薪俸稅邊際稅率，建議如下:

邊際稅階				2005/06年度	2006/07年度
應課稅入息實額的
首30,000港元為				2%	2%
次30,000港元為				8%	7%
次30,000港元為				14%	13%
其餘為				20%	19%
標準稅率				16%	16%

供樓利息扣除期限延長三年，至為期十年，最高扣減額則維持每年100,000元。

證券、期貨及期權合約的證監會交易徵費下調20%。

按「污染者自付」的原則，適度引入「環保稅」。計劃推行「生產者責任計劃」，把汽車輪胎及膠袋納入規管，以推動輪胎的回收及循環再造，以及減少使用膠袋。

再度延長電動車輛的首次登記稅豁免安排三年，至二OO九年三月三十一日為止。

擴闊稅基

研究開徵商品及服務稅，開拓更穩定的收入來源。

銷售稅年中開始諮詢，預期由決定至推行需時3年。