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Publications and Press Releases :
Press Release
: News Archives
Revenue Bill 2004 to be gazetted on Friday
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The Revenue Bill 2004, which seeks to implement some of the revenue-related
measures announced in the 2004-05 Budget, will be gazetted this
Friday (April 23).
Under the Bill, the Inland Revenue Ordinance (Cap. 112) will be
amended to effect two revenue-related measures.
The first proposal is to extend the entitlement for home loan interest
deduction under salaries tax and personal assessment from five to
seven years of assessment.
"Though the burden of home mortgage repayments on taxpayers
in general is lighter now than when the deduction was introduced
in the 1998/99 year of assessment due to the fall in property prices
and the drop in mortgage interest rates, we propose to extend the
entitlement period for the home loan interest deduction as a relief
to all home owners and to ease the heavy financial load still borne
by many families. As taxpayers who have, since 1998/99, claimed
the deduction continuously will have their five-year entitlement
period expire in the 2003/04 year of assessment, we propose that
the additional concession take effect from the 2003/04 year of assessment.
Several hundred thousand taxpayers will benefit from this measure,"
a Government spokesman said.
The second proposal is to extend the scope of deduction for research
and development expenses under profits tax to cover design-related
expenses. This proposal will facilitate the proposed "DesignSmart"
initiative which aims to strengthen our support for design and innovation.
It is proposed that the extension take effect from the 2004-05 year
of assessment. After the proposed extension, the scope of research
and development expenditure deduction allowed under our regime will
compare favourably with other jurisdictions.
The cost to government revenue of the extension of the entitlement
period for the home loan interest deduction is estimated to be $4.6
billion over five years, while the extension of scope of the profits
tax deduction for research and development expenses will cost $30
million in a full year.
The Bill will be introduced into the Legislative Council on April
28, 2004.
Ends/Tuesday, April 20, 2004
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