WEDNESDAY, FEBRUARY 26, 1975
HIGHER TAXES AND FEES PROPOSED
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THE FINANCIAL SECRETARY TODAY PROPOSED A SERIES OF TAX INCREASES AND HIGHER FEES AND CHARGES ON A VARIETY OF ITEMS, INCLUDING POSTAL SERVICES, THE GENERAL RATE, LIQUOR AND TOBACCO, BUSINESS AND COMPANY REGISTRATIONS, BANK LICENCES, AND A REINTRODUCTION OF ENTERTAINMENT TAX,
HE ESTIMATED THAT THE TAX INCREASE PACKAGE WOULD RAISE AN EXTRA $467 MILLION IN REVENUE, BUT THAT THE ULTIMATE EFFECT ON THE CONSUMER PRICE INDEX WOULD NOT EXCEED ONE-HALF OF A PER CENT.
MOST OF HIS PROPOSED INCREASES ARE TIMED FOR APRIL 1 THIS YEAR OR LATER, BUT NEW DUTIES ON LIQUOR AND TOBACCO CAME INTO EFFECT AT 2.30 P.M. TODAY (WEDNESDAY).
LIQUOR AND TOBACCO
THE DUTY ON SPIRITUOUS LIQUOR AND WINES IMPORTED FROM NON-COMMONWEALTH COUNTRIES IS RAISED BY $6, PER GALLON AND 10 PER CENT, RESPECTIVELY. A GALLON OF BEER WILL COST 60 CENTS MORE. THE EFFECT WILL BE THAT A BOTTLE OF BRANDY AND WHISKY WILL COST $1 MORE, A STANDARD (REPUTED QUART) BOTTLE OF SPARKLING WINE AN EXTRA 90 CENTS, STILL WINE A MAXIMUM OF 50 CENTS MORE, A SMALL AND LARGE BOTTLE OF BEER FIVE CENTS AND 10 CENTS MORE, RESPECTIVELY.
THESE INCREASES ARE EXPECTED TO BRING IN AN EXTRA $11 MILLION TO THE GENERAL REVENUE.
ENTERTAINMENT TAX
THE FINANCIAL SECRETARY RE-INTRODUCED ENTERTAINMENT TAX, WHICH WAS ABOLISHED TWO YEARS AGO, AND SAID THE NEW TAX WOULD BE AT RATES LESS ONEROUS THAN BEFORE FOR BOTH OPERATORS AND PATRONS.
HIS PROPOSED NEW ENTERTAINMENT TAX ENVISAGES DUTY OF 40 CENTS ON $4 SEATS, 60 CENTS DUTY FOR $6 SEATS AND 80 CENTS DUTY FOR $8 SEATS.
HE ESTIMATED THAT THE YIELD OF THE REINTRODUCED TAX WOULD BE ABOUT $21 MILLION, BASED ON VARIOUS ASSUMPTIONS SUCH AS THE SEATING CAPACITY OF CINEMAS CURRENTLY IN OPERATION, THE NUMBER OF SEATS IN EACH AND THE DAILY SEAT OCCUPANCY" RATE.
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