New tax system being studied

August 23, 2017

The Government is studying the implementation of a two-tier tax system, which will be effective from the second half of next year.

Secretary for Financial Services & the Treasury James Lau told the media today the study is looking at the system’s legislative and fiscal implications, and economic impact.

“We will be actually looking at the Inland Revenue Ordinance, and we will be looking at the implication of the changes.

 “When we put a legislative proposal to the Legislative Council, we will need to explain the justification for the purpose of the amendments, the impact and the rationale for the changes.”

Mr Lau said a two-tier tax plan, instead of the current one-tier one, will add complexity to the system but it will encourage businesses to put more resources into research and development, and will benefit the economy as a whole.

SOURCES: news.gov.hk

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