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Legislative Council passes Revenue Bill 2007


The Legislative Council today (June 13) passed the Revenue Bill 2007 giving effect to two tax reduction measures proposed by the Financial Secretary in his 2007-08 Budget.

The Budget proposed to reduce the duty rate on alcoholic beverages (other than wine) containing not more than 30 per cent of alcohol from 40 per cent to 20 per cent, and that on wine from 80 per cent to 40 per cent.

The Budget also proposed to reduce the rate of stamp duty on transactions of properties with a value between $1 million and $2 million from 0.75 per cent to a fixed amount of $100.

These two Budget proposals have come into effect on Budget Day (28 February 2007) under the Public Revenue Protection (Revenue) Order 2007. The Order gives legal effect to these proposals for a maximum period of four months. The Revenue Ordinance 2007 gives legal effect to the proposals from 22 June 2007 onwards.

"We believe that the reduction of stamp duty would help more families own their homes. The reduction of duty on alcoholic beverages would help promote the development of our catering industry, tourism and wholesale and retail alcoholic beverage trade, thereby benefiting the community at large," a Government spokesman said.

"In the long run, the Government intends to promote the development of Hong Kong as the region's wine exhibition, trading and logistics centre", he added.

Ends/Wednesday, June 13, 2007
Issued at HKT 21:46