The Legislative Council has passed the Revenue Bill 2008 which implements the revenue measures announced in the 2008-09 Budget.

The proposal to waive hotel accommodation tax will be effected July 1.

Other proposals relating to salaries, profits and property tax, and tax under personal assessment, will be effected by amending the Inland Revenue Ordinance.

There are five proposals under the Inland Revenue Ordinance. The first is to reduce the standard rate and the corporate profits tax rate from 16% to 15% and from 17.5% to 16.5%.

The second proposal is to increase the basic allowance and single parent allowance under salaries tax from $100,000 to $108,000 and married person's allowance from $200,000 to $216,000. It is also proposed each tax band be widened from $35,000 to $40,000.

The third proposal is to increase the deduction ceiling for approved charitable donations under profits tax, salaries tax and tax under personal assessment from 25% to 35% of assessable profits or income.

The fourth proposal is to allow a 100% profits tax deduction for capital expenditure on environment-friendly machinery and equipment in the year of purchase and to shorten the depreciation period for environment-friendly installations mainly ancillary to buildings from the usual 25 years to five years.

These four proposals will take effect from the year of assessment 2008-09.

The fifth proposal is to reduce salaries, profits and property tax, and tax under personal assessment for 2007-08 by 75%, subject to a ceiling of $25,000 for each case. The reduction will be reflected in the taxpayer's final tax payable for 2007-08.