(17865) Dd.145178 400m 5/73 G.W.B.Ltd. Gp.863
NOTHING TO BE WRITTEN IN THIS MARGIN
8.
CONFIDENTIAL
in 1979/80
With a standard rate of only 18%, there would be a need to find a further HKX690 million or so from general revenue. How much might it be possible to raise by increasing existing indirect taxes and other charges and by introducing new taxes?
As far as existing levies are concerned, apart from Earnings and
Profits Tax, the largest categories of recurrent revenue include Excise Duties, General Rates and Internal Revenue (Stamp Duties, Betting Taxes, etc.). Receipts from Licences and Fees as well
as Properties and Investments are also substantial. Assuming no
change in the base liable to charge at existing rates, it would
be possible to raise some HK320 million in 1979/80 at 1976 prices
by an across the board increase in Excise Duties, General Rates and Internal Revenue of 121%. (This is not the same as 121⁄2 per- centage points. Thus a Stamp Duty of 2% (yielding HK$2.00 on a HK$100 contract note) would be increased not to 14% but to 2% 121% of 2%, that is 21% (yielding HK$2.25), an increase of a quarter of a percentage point only.) If Licences and Fees were also included, the across the board increase necessary to yield some HKX320 million would be nearer 10%.
(HK million at 1976 prices)
76/77*
77/78
78/79
79/80
Total recurrent revenue
6369
7200
7850*
8580
Excise Duties
648
7321
798*
870*
2550 at 121%
General Rates
615
695*
737x
X
826
= 319
X
Internal Revenue
636
7191
783*
Licences
214
242x
X
Fees
192
217
X
854*
264 287*
236x
258*
2305
2605*
2838
Earnings & Profits
3095 at 10%-310
Tax
2428
2603
2772* 2952*
4733
5208
5610 6047
Properties and
Investments
378
revenue proposals in Budget
as per Statistical Appendices to Budget, adjusted for
✦ as per Budget speech, page 113.
x assuming growth rate same as for total recurrent revenue.
as per question 6.
CONFIDENTIAL
speěch