The Legislative Council of Hong Kong passed a bill Wednesday, allowing the implementation of two concessionary measures relating to allowances under salaries tax and personal assessment announced in the 2005-2006 Budget.

With the passage of the Revenue (allowances for tax) Bill 2005,the child allowance will raise from 30,000 HK dollars (3,860 US dollars) per child to 40,000 HK dollars (5,148 dollars).

In addition, two allowances will be introduced for taxpayers maintaining parents or grandparents aged 55 to 59.

They will be granted a basic allowance of 15,000 HK dollars (1,930 dollars) a year, with an additional allowance of the same amount if their parents or grandparents reside with them continuously.

Both measures will take effect from the 2005/06 year of assessment. Around 300,000 taxpayers will benefit from the first measure and 100,000 from the second.

The measures are estimated to cost the government 1.07 billion HK dollars (137.7 million dollars) a year in revenue.

Source: Xinhua