WEDNESDAY, MARCH 1, 1978
FINANCIAL SECRETARY MAKES SEVEN REVENUE PROPOSALS ******
THE FINANCIAL SECRETARY, THE HON. PHILIP HADDON-CAVE, TODAY MADE SEVEN REVENUE PROPOSALS IN HIS BUDGET FOR 1978-79.
ONE INVOLVED AN INCREASE IN POSTAL CHARGES AND SIX ARE CONCERNED WITH INDIRECT TAX.
THE FIRST PROPOSAL IS DESIGNED TO STOP CONFERRING ON SOME 20,000 TAX DEFAULTERS, THE BENEFIT OF THE TWO TAX INSTALMENT SYSTEM. SO, WITH EFFECT FROM 1978-79, TAX NOTICES WILL CARRY THE WARNING THAT IF THE FIRST INSTALMENT IS NOT PAID BY THE DUE DATE, THE SECOND WILL AUTOMATICALLY BECOME DUE.
THE SECOND PROPOSAL SEEKS TO INCREASE EXCISE DUTY ON IMPORTED CIGARETTES IN ORDER TO RESTORE THE INCIDENCE OF DUTY WHICH HAS DROPPED AS A RESULT OF LESS TOBACCO (BY WEIGHT) EEING USED IN IMPORTED CIGARETTES.
THE INCREASE, WHICH CAME INTO EFFECT AT 2.30 P.M. TODAY, WILL RAISE THE AMOUNT OF DUTY LEVIED ON A PACKET OF 20 IMPORTED CIGARETTES BY SIX CENTS AND BRING AN ADDITIONAL REVENUE OF ABOUT $10 MILLION IN 1978-79.
THE THIRD PROPOSAL IS TO RENDER UNLAWFUL THE USE OF KEROSENE FOR AUTOMOTIVE PURPOSES. THIS IS BECAUSE KEROSENE DOES NOT ATTRACT DUTY AT PRESENT, AND CERTAIN USERS OF PASSENGER AND GOODS VEHICLES HAVE BEEN ABUSING THIS CONCESSION BY MIXING KEROSENE WITH DIESEL OIL IN THEIR ENGINES.
THIS PRACTICE IS ALSO OBJECTIONABLE ON ENVIRONMENTAL GROUNDS BECAUSE DIESEL/KEROSENE MIXTURES GIVE RISE TO A GREAT DEAL CF SMOKE.
THUS, MAKING THE USE OF KEROSENE FOR AUTOMOTIVE PURPOSES ILLEGAL WILL HAVE THE DUAL EFFECT OF REMOVING A NUISANCE, AND OF STOPPING A LOSS OF REVENUE OF ABOUT $2 MILLION A YEAR.
THE FOURTH PROPOSAL IS TO INCREASE FIRST REGISTRATION TAX ON PRIVATE CARS THROUGH THE INTRODUCTION OF A SCALE WHICH WILL DISTINGUISH BETWEEN BASIC, SEMI-LUXURY AND LUXURY CARS. THESE TERMS ARE DEFINED AS FOLLOWS IN RELATION TO THE LANDED (OR CIF) VALUE (WHICH IS NOT THE SAME AS SALE PRICE) OF PRIVATE CARS:
* BASIC ..... UP TO $20,000
* SEMI-LUXURY
$20,000 TO $30,000
*
LUXURY ..... OVER $30,000.
/THE RATE OF