23
61.
(vi) Revised estimate of outturn for 1974-75
I consider then, that my budget proposals for increased fees for licences for private cars, motor cycles, public cars, taxis, public light buses, drivers licences
and for car parking charges should be revised. My original
proposals in respect of vehicle licences have already been.
implemented in accordance with an order made under the
Public Revenue Protection Ordinance.
Your Excellency has
now signed a further order which replaces the previous order and introduces the revised proposals from 28th March 1974. Those who have renewed their vehicle licences since 27th
February at higher fees than the ones
I am proposing will be entitled to a refund. Those lucky enough to have renewed at lower fees will not be required to pay
any more on this occasion.
62.
now
The effect of these revisions is to reduce the yield from my revenue proposals from $175 million to $165.5 million ($3.5 million less in respect of vehicle and motor cycle licences, $4 million less in respect of public light buses and $2 million in respect of drivers' licences). Thus the small surplus of $21 million I estimated as the outturn for 1974-75 is reduced to $12 million or thereabouts.
63.
This is a small surplus, indeed, to be budgetting for these days, particularly as there have been developments in the past month that could give rise to higher expenditure. For instance, we may have under-estimated the amount of leased accommodation we shall require and I have suddenly been presented with a request for funds to acquire additional property in the urban areas to enable redevelopment to proceed in accordance with statutory and draft outline zoning plans.
(c) Financial sector
64.
I turn now to the third major theme of this debate, namely, the related questions of withholding tax on interest payments, finance companies and our policy on
banking licences.
My honourable Friends Mr. Sayer and
Mr. James Wu considered that abolishing interest tax completely
/would.....