The Revenue (Allowances for Tax) Bill 2005, which seeks to implement some of the tax relief measures announced in the 2005-06 Budget, will be gazetted on April 22. The bill will be introduced into the Legislative Council on April 27.

Under the Bill, the Inland Revenue Ordinance (Cap 112) will be amended to effect two proposals relating to allowances under salaries tax and personal assessment.

The first proposal, to increase the child allowance from $30,000 to $40,000, seeks to alleviate taxpayers' heavy burden in raising children. Around 300,000 taxpayers will benefit from this proposal.

It is estimated the proposed increase will cost the Government $620 million in tax revenue in a full year.

The second proposal is to introduce a new basic allowance and an additional allowance for taxpayers maintaining parents/grandparents aged 55 to 59.

They will be granted a basic allowance of $15,000 a year, with an additional allowance of the same amount if their parents or grandparents are residing with them.