VEDNESDAY, FEBRUARY 26, 1975

MR. HADDON-CAVE EXPLAINED THAT RATES WERE BASICALLY A TAX ON OCCUPIERS FOR THE PAYMENT OF LOCAL SERVICES +RATHER THAN A DEMONSTRABLE ABILITY TO PAY AS WITH, SAY, EARNINGS AND PROFITS TAXES.+

*RATES CATCH MANY WHO WOULD OTHERWISE CONTRIBUTE LITTLE OR NOTHING TO THE REVENUE AND THIS SHOULD DE BORNE IN MIND BY THOSE WHO VOCIFEROUSLY COMPLAIN THAT THE DIRECT TAX NET IS CAST ACROSS TOO RESTRICTED A FIELD, HE SAID.

THE FOLLOWING ARE TABLES SHOWING THE EFFECT OF THE TWO PERCENTAGE POINT INCREASE IN THE GENERAL RATES TO 11 PER CENT:-

EFFECT OF INCREASE IN THE GENERAL RATE TO 11%

PRIVATE SECTOR

DOMESTIC (POST-WAR)

(1)

CLASS

(2) AVERAGE RENT

(3) RATES PER

(4) AVERAGE

(5)

RATES PER

5)AS A

*) (PER

MONTH AT

RENT(PER

MONTH AT

% OF (4)

MONTH

EACH 15%

MONTLI

EACH 2%

EXCLUDING

INCLUDING

RATES)

RATES)

(2)+(3)

$

SMALL

530

$7.50

$

37.50

567.50

$5.00

$

5.00

0.88%

TENEMENTS

LARGE

695

48.00

743.00

6.40

0.86%

TENEMENTS

SMALL FLATS

1,015

76.50

1,091.50 10.20

0.93%

MEDIUM FLATS

2,175

144.50

2,319.50 19.30

0.83%

LARGE FLATS 4,180

301.00

4,481.00 40.20

0.90%

HOUSES

6,190

476.00

6,666.00 63.50

0.95%

PRIVATE SECTOR

NON-DOMESTIC

(PRE-WAR AND POST-WAR)

GROUND FLOOR

2,320

211.50

2,531.50 28.20

1.11%

SHOPS

OFFICES

3,850

286.50

4,136.50 38.20

0.92%

COMMERCIAL

5,610

547.50

6,157.50 .73.00

1.19%

PREMISES

/FACTORY PREMISES

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