WEDNESDAY, FEBRUARY 25, 1976
+ IN ADDITION TO SHELF COMPANIES,+ HE SAID, THIS WILL BRING INTO THE NET THOSE COMPANIES WHICH, ALTHOUGH INCORPORATED IN HONG KONG, CARRY ON SUCH BUSINESS AS THEY DO OUTSIDE HONG KONG.
THE INCREASED REVENUE WILL BE AT LEAST $1 MILLION IN
1976-77.
EXCISE DUTIES ON HYDROCARBON OILS
REFERRING TO HIS FINAL PROPOSAL TO BRING IN ADDITIONAL REVENUE, MR. HADDON-CAVE NOTED THAT THE RATES OF DUTY ON PETROL AND AUTOMOTIVE DIESEL FUEL HAD REMAINED UNCHANGED SINCE 1966.
ALTHOUGH THE CONTRIBUTION OF THE MOTOR IST AND OTHER ROAD USERS TO GENERAL REVENUE THROUGH EXCISE DUTIES AND OTHER TAX TYPE LEVIES HAS INCREASED OVER THE PAST TEN YEARS FROM $136 MILLION IN 1966-67 TO AN ESTIMATED $359 MILLION IN 1976-77, AS A PROPORTION OF RECURRENT REVENUE IT HAS FALLEN FROM EIGHT PER CENT TO 5.8 PER CENT,
MOREOVER THE CONTRIBUTION OF DUTIES ON HYDROCARBON OILS TO RECURRENT REVENUE HAS DECLINED MORE SHARPLY.
MR. HADDON-CAVE SAID THE TIME HAS NOW COME WHEN THE TRADE COULD STAND SOME UPWARD ADJUSTMENT OF THE RATES OF DUTY.+
HE NOTED THAT IN THE CASE OF PETROL, DEMAND BY THE FIRST QUARTER OF 1976 HAD RECOVERED TO THE LEVEL OF THE THIRD QUARTER OF 1972. IT THEN TOOK OFF TO THE EXCEPTIONALLY HIGH LEVEL EXPERIENCED IN LATE 1972 TO MID-1973.
IN THE CASE OF AUTOMOTIVE DIESEL FUEL, DEMAND IS FAIRLY PRICE INELASTIC.+ EVEN IN 1974, THERE WAS A SLIGHT INCREASE OVER 1973. BY THE SECOND AND THIRD QUARTERS OF 1975, THE RATE INCREASE HAD RETURNED TO NORMAL AND HAS ONLY SLOWED DOWN A LITTLE AS A RESULT OF THE NOVEMBER 1975 PRICE INCREASE OF 25 CENTS PER GALLON,
UNDER THE FINANCIAL SECRETARY'S PROPOSAL, THE DUTY ON PETROL WILL BE INCREASED FROM $1.80 TO $2.20 OR 40 CENTS A GALLON WHILE THAT ON AUTOMOTIVE DIESEL FUEL WILL RISE FROM $1.30 TO $1.60 OR 30 CENTS A GALLON.
THE RETAIL PRICES SHOULD INCREASE TO NO MORE THAN $6.25 AND $4.75 A GALLON RESPECTIVELY.
MR. HADDON-CAVE ESTIMATED THAT THE ADDITIONAL REVENUE YIELD IN THE COMING FINANCIAL YEAR WOULD BE ABOUT $37 MILLION.
/OTHER PROPOSALS