PRESS RELEASE

Legislative Council passes the Inland Revenue (Amendment) Bill 2009

**********************************************************************

The Legislative Council passed the Inland Revenue (Amendment) Bill 2009 today (June 24). The bill seeks to implement the one-off tax reduction proposed by the Financial Secretary on May 26, which enhanced the original proposal in the 2009-10 Budget.

The Financial Secretary proposed in the 2009-10 Budget to allow a one-off reduction of 50% of salaries tax and tax under personal assessment for the year of assessment 2008-09, subject to a ceiling of $6,000. After taking into account the latest economic indicators, the Financial Secretary announced on May 26 a number of additional relief measures, including the proposal to increase the extent of the one-off tax reduction to 100% of salaries tax and tax under personal assessment for 2008-09, subject to a ceiling of $8,000.

"After considering the latest economic situation, the Government reacts promptly by introducing further appropriate measures to relieve the burden of the public. The enhanced measure can provide timely relief to those in need, particularly the middle class who are unemployed or suffering from income reduction," a Government spokesman said.

The enhanced measure to reduce salaries tax and tax under personal assessment for 2008-09 by 100%, subject to a ceiling of $8,000, will cost the Government about $6.1 billion. The reduction will be reflected in the taxpayer's final tax payable for 2008-09.

Ends/Wednesday, June 24, 2009
Issued at HKT 19:26

NNNN