Record breaking: Commissioner of Inland Revenue Alice Lau says total tax revenue rose 7% to a high of $155 billion in 2006-07.

Total tax revenue soared to a record high of $155 billion in 2006-07, up 7% on the last financial year, Commissioner of Inland Revenue Alice Lau says.

Income from profits tax rose 3% over a year earlier, to $71.9 billion, while that from salaries tax grew 3% to $38.6 billion. An 8% rise was recorded in revenue from property tax and personal assessment, bringing the income to $4.8 billion.

Estate-duty revenue plummeted 54%, to $778 million, while that from stamp duties soared 40%, to $25.1 billion. The income from other taxes also rose 5%, to $1.8 billion, while revenue from betting duty nudged up 1%, to $12 billion.

Tax returns issued

The Inland Revenue Department issued 1.86 million individual tax returns today. Taxpayers should read and follow the guide when completing their tax returns. All individual tax returns should be submitted by June 2, and sole proprietors of unincorporated businesses have until August 2.

In this year's Budget, the Financial Secretary proposed waiving 50% of salaries tax and tax under personal assessment for 2006-07, subject to a ceiling of $15,000 per case.

"Salary earners should complete this year's tax return as usual. No application is needed for the waiver. Individuals with rental or business income will need to elect for personal assessment, if eligible, to enjoy the waiver. They can make the election in this year's tax return. The department will check, in each case, whether the election will reduce the taxpayer's liability, and will make the assessment in the way to his or her advantage," Mrs Lau said.

On the proposed tax concessions in connection with the child allowance, Mrs Lau said if a taxpayer has a baby born in 2007-08 - before she or he submits this year's tax return - the individual can include the relevant details so the department can take them into account in assessing his provisional tax payable.

"If the baby is born after the tax return is submitted, he can apply to have his provisional tax held over after receipt of the tax bill."

On the proposal to revert the marginal tax bands and tax rates under salaries tax to their 2002-03 levels, the commissioner said if the proposals are endorsed by the Legislative Council, the department will work out this year's tax bills effecting these tax concessions.

Tax concessions

Taking account of the tax concessions proposed in this year's Budget, Mrs Lau estimated the income from total earnings and profits tax will drop to $112 billion in 2007-08.

The department will boost support for its enquiry hotline and extend its service hours. From today until June 2, enquiries can be made at 187 8022 from 8.15am to 7pm from Mondays to Fridays and 9am to 1pm on Saturdays.

To encourage e-filing, an automatic extension of one month to July 3 is granted to last year's e-filers. Other e-filers will be granted a two-week extension, to June 16.