to
environment for industry, with the availability of the necessary
infrastructure and support services. So, on services related
industrial development, we are planning to spend, subject to
this Council's approval, significantly more. in 1988-89 than in earlier years and I shall be giving details later when I present
my expenditure proposals.
Strategy for revenue
47.
I turn now to my strategy for public revenue over
the next few years.
I have already indicated the potential
that exists for a lowering of the tax burden. After allowing for the expenditure programmes, I am able to propose a package
of
taxation measures that overall will reduce recurrent revenue
by about 5% of present yields. The effect will be to reduce the
average overall surplus in the Medium Range Forecast period to
$2.7 billion a year. This will still leave a comfortable, margin
to maintain the value of our reserves in real terms and to
provide a cushion for unforeseen events.
48.
The balanced package that I shall detail later is
however more than just a simple lowering of some tax rates. The particular measures I am proposing are designed to move our
overall fiscal regime towards what
what I believe will be a more
robust and equitable shape for the future.
49.
When Members commented last year on my remarks about
the potential value of a wider and more stable tax base, I gave an assurance that nothing would be proposed to alter the balance
between direct and indirect taxes without the most careful
consideration of the potential effects. Since then, we have
been working
working to identify the advantages and disadvantages of
different ways of bringing about such a move towards
towards indirect
taxes. In this regard, let me remind Members of the basic
criteria which I
any major new indirect tax should
consider
/meet
...