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WEDNESDAY, FEBRUARY 25, 1981
+I FEAR, THEREFORE, THAT THEIR FARE/TARIFF STRUCTURES WILL HAVE TO BE LOOKED AT AGAIN CLOSELY BEFORE VERY LONG (BUT THIS WILL BE COUPLED WITH A RE-EXAMINATION OF THE ASSUMPTIONS UNDERLYING THE IR OPERATING ACCOUNTS),+ HE SAID.
EXPLAINING HIS FISCAL POLICY, SIR PHILIP SAID EQUITY OF THE TAX SYSTEM, ACCORDING TO THE REVENUE ESTIMATES, WOULD FURTHER DETERIORATE WITH ONE EXCEPTION REVENUE FROM PROPERTY TAX IN 1981-82 IS ESTIMATED TO DOUBLE COMPARED WITH 1980-81, PARTLY AS A RESULT OF THE ADDITION OF NEW BUILDINGS, BUT MAINLY AS A RESULT OF THE REASSESSMENT OF ASSESSABLE VALUES NOW IN TRAIN.
THE CONTRIBUTION OF PROPERTY TAX TO TOTAL COLLECTIONS OF EARNINGS AND PROFITS TAXES WOULD INCREASE TO 6.4 PER CENT IN 1981-82 FROM FOUR PER CENT IN 1980-81 AND COULD BE COMPARED WITH 9.4 PER CENT IN 1976-77, THE YEAR OF ASSESSMENT IN WHICH THE LIST OF ASSESSABLE VALUES WAS ESTABLISHED AS A BY-PRODUCT OF THE 1976 REVALUATION OF RATEABLE VALUES.
OTHER INDIRECT TAXES ESTIMATED TO CONTRIBUTE TO TOTAL RECURRENT REVENUE IN 1981-82 WERE :
RATES: 4.9 PER CENT COMPARED WITH 5.4 PER CENT IN 1980-81 AND 8.9 PER CENT IN 1977-78. +THE ONLY WAY THAT THIS TREND CAN BE REVERSED IS BY AN INCREASE IN THE GENERAL RATE PERCENTAGE, BECAUSE A REVALUATION OF RATEABLE VALUES IS NOT POSSIBLE SO LONG AS RENT CONTROLS EXTEND TO ALL RESIDENTIAL PREMISES,+ HE EXPLAINED.
STAMP DUTIES: SIX PER CENT COMPARED WITH A PREDICTED HIGH OF 10.5 PER CENT IN 1980-81 AND BETWEEN SIX PER CENT AND 7.5 PER CENT IN THE FIRST FOUR POST-RECESSION YEARS.
DUTIABLE COMMODITIES: 4.3 PER CENT COMPARED WITH 4.9 PER CENT IN 1980-81. HE EXPLAINED THAT THE CONTRIBUTION OF DUTIABLE COMMODITIES HAD, IN FACT, BEEN DECLINING STEADILY SINCE 1976-77, WHEN IT WAS 10 PER CENT, PARTLY BECAUSE EARNINGS AND PROFITS TAXES WERE SO INCOME SENSITIVE AND PARTLY BECAUSE EXCISE DUTIES WERE SPECIFIC AND NOT AD VALOREM AND RATES HAD NOT BEEN UPDATED TO MAINTAIN INCIDENCE.
BETS AND SWEEPS TAXES: 4.1 PER CENT FROM A PEAK OF FIVE PER CENT IN 1977-78 AND DOWN TO 4.6 PER CENT IN 1980-81.
+FINALLY, OF THE OTHER INDIRECT TAXES, THE ONLY ONE THAT IS WORTH WORRYING ABOUT IN TERMS OF EQUITY BETWEEN CLASSES OF TAXPAYERS IS FIRST REGISTRATION TAX ON MOTOR VEHICLES WHICH IS ESTIMATED TO CONTRIBUTE TWO PER CENT TO TOTAL RECURRENT REVENUE IN 1981-82, COMPARED WITH 2.2 PER CENT IN 1980-81, HAVING PEAKED AT 2.6 PER CENT IN EACH OF THE TWO PREVIOUS YEARS 1978-79 AND 1979-80,+ SIR PHILIP CONTINUED.
HE ADDED: +WHETHER THIS REPRESENTS A REASONABLE CONTRIBUTION TO THE REVENUE IS DEBATABLE.
SIR PHILIP DID NOT WISH TO BE DRAWN INTO ARGUMENTS ABOUT WHICH OF THE THREE IMPOSTS CARRIED BY PRIVATE MOTORISTS --- FIRST REGISTRATION TAX, ANNUAL LICENCE FEES FOR VEHICLES AND DRIVERS, AND EXCISE DUTY ON HYDROCARBON OILS --- WOULD BE THE WEAPON MOST EFFECTIVE TO ENSURE THAT AVAILABLE ROAD SPACE WAS USED AS EFFECTIVELY AS POSSIBLE AS OUR PUBLIC TRANSPORT SERVICES WERE DIVERSIFIED AND IMPROVED OR, INDEED, INTO AN ARGUMENT AS TO WHETHER ANY OF THESE WEAPONS SHOULD BE USED.
/+BUT IT