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WEDNESDAY, APRIL 16, 1980
TURNING TO EXTERNAL TRADE, SIR PHILIP SAID IN THE FIRST TWO MONTHS OF THIS YEAR TOTAL EXPORTS CONTINIED TO GROW FASTER THAN IMPORTS BY A SIGNIFICANT MARGIN, SO THAT THE VISIBLE TRADE GAP CONTINUED TO NARROW, THE GROWTH RATE IN REAL TERMS OF DOMESTIC EXPORTS DURING THESE TWO MONTHS WAS 25 PER CENT COMPARED WITH A 19 PER CENT GROWTH RATE IN IMPORTS.
BUT HE EXPECTED THAT THERE WOULD BE A REVERSAL OF RECENT TRENDS IN THE NOT TOO DISTANT FUTURE. +I COULD, OF COURSE HAPPILY BE PROVED WRONG. IN FACT, IF THE GROWTH RATE OF IMPORTS OF RAW MATERIALS AND SEMI-MANUFACTURES IS TAKEN AS A LEADING INDICATOR OF EXPORT PERFORMANCE, THE PROSPECTS FOR THE NEXT FEW MONTHS SHOULD BE VERY REASONABLE FOR, ALTHOUGH THE GROWTH RATE OF IMPORTS OF RAW MATERIALS AND SEMI-MANUFACTURERS HAS SLOWED DOWN IN RECENT MONTHS, THE INCREASES ARE STILL HIGH IN ABSOLUTE TERMS.+
I
NO NEED TO REVISE PERSONAL TAXATION ALLOWANCE PROPOSALS
*****
THE FINANCIAL SECRETARY, THE HON SIR PHILIP HADDON-CAVE SAID TODAY HE SAW NO NEED TO +FINE TUNE+ HIS PERSONAL TAXATION ALLOWANCE PROPOSALS AT PRESENT, BUT HE PROMISED TO REVIEW THE ALLOWANCES PERIODICALLY AND REVISE THEM TO THE EXTENT THAT OUR BUDGETARY SITUATION PERMITS TO AVOID FISCAL DRAG AND TO KEEP THOSE ON INCOMES AT THE LOWER END OF THE SCALE OUT OF THE TAX NET.
SPEAKING AT THE RESUMED BUDGET DEBATE, SIR PHILIP SAID THE NEW ALLOWANCES WOULD BENEFIT 315 000 PERSONAL TAXPAYERS TO A GREATER OR LESSER EXTENT AND KEEP ANOTHER 60 000 WHO WOULD OTHERWISE BE CAUGHT, OUT OF THE TAX NET.
HE SAID THE NEW ALLOWANCES WERE PITCHED AT A LEVEL WHICH HAD REGARD TO THE IR IMPACT ON THE EFFECTIVE RATES OF TAX AT VARIOUS INCOME LEVELS AND THE CONSEQUENTIAL COST TO THE REVENUE.
HE GAVE THE FOLLOWING EXAMPLES TO ILLUSTRATE THE LOW EFFECTIVE TAX RATE
* A SINGLE MAN ON AN INCOME OF $20 000 WILL NOW
PAY $250, AN EFFECTIVE TAX RATE OF 1.25 PER CENT
* A SINGLE MAN ON $25 000 WITH ONE DEPENDENT PARENT
WILL PAY $250, AN EFFECTIVE RATE OF ONE PER CENT
*
A MARRIED MAN WITH TWO CHILDREN ON $44 000 WILL PAY $250, AN EFFECTIVE RATE OF 0.57 PER CENT AND
* A MARRIED MAN WITH TWO CHILDREN AND TWO DEPENDENT
PARENTS ON $54 000 WILL ALSO PAY $250, AN EFFECTIVE RATE OF 0.46 PER CENT.
/SIK PHILIP