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WEDNESDAY, FEBRUARY 25, 1981
+BUT IT IS ALSO DEBATABLE WHETHER THE TOTAL CONTRIBUTION OF ROAD USERS TO TOTAL RECURRENT REVENUE IS AS HIGH AS IT SHOULD BE, HAVING FALLEN FROM AN AVERAGE OF 6.8 PER CENT IN THE FIRST FOUR POST-RECESSION YEARS TO 5.3 PER CENT IN 1980-81 AND BEING ESTIMATED AT ONLY 4.8 PER CENT IN 1981-82,+ HE SAID.
DISCUSSING OPTIONS OPEN TO HIM TO INCREASE REVENUE SIR PHILIP SAID THE GENERAL RATE PERCENTAGE AND STAMP DUTIES ON CONTRACT NOTES AND ASSIGNMENTS OF PROPERTY COULD BE RAISED.
HE ALSO SAID SOME ADJUSTMENTS TO SOME RATES OF DUTY ON DUTIABLE COMMODITIES OUGHT TO BE PRODUCTIVE OF MORE REVENUE, ALBEIT CARRYING A POSSIBLE RISK OF ADDING TO INFLATIONARY PRESSURES.
SIR PHILIP SAID EXTRA REVENUE FROM BETS AND SWEEPS TAXES COULD BE RAISED AS HE COULD NOT BELIEVE PUNTERS AS A CLASS OF TAXPAYER SHOULD BE CONTRIBUTING LESS THAN FIVE PER CENT TO TOTAL RECURRENT REVENUE PARTICULARLY WHEN TOTALISATOR TURNOVER HAD INCREASED FROM $2 580 MILLION IN FISCAL 1976-77 TO WELL OVER $8 200 MILLION IN 1980-81 AND WAS PREDICTED TO BE ABOUT $10 500 MILLION IN 1981-82.
THERE WAS, HE SAID, ALSO SCOPE FOR SOME INNOVATIONS IN THE TAXATION OF MOTORISTS FRT, ANNUAL LICENCE FEES FOR VEHICLES AND DRIVERS AND DUTY ON HYDROCARBON OILS +AGAIN ON THE GROUNDS OF EQUITY BETWEEN CLASSES OF TAXPAYERS AND LIKELY PRICE ELASTICITIES.
REGARDING ROYALTY-LOADED AND TAX-LOADED FEES AND CHARGES, SIR PHILIP SAID MANY OF THEM SHOULD BE INCREASED BY UP TO 100 PER CENT AND MORE TO RESTORE THE ORIGINAL LOADINGS.
+AND, AS REGARDS COST-RELATED CHARGES, MANY OF THESE ARE, FOR ONE REASON OR ANOTHER, UP TO FIVE YEARS OR MORE OUT OF DATE,+ HE ADDED.
SIR PHILIP POINTED OUT THAT PHASE II OF THE FINANCIAL INFORMATION SYSTEM MEANT THE AVAILABILITY IN DUE COURSE OF UP-TO-DATE INFORMATION ON COSTS TO ADJUST ALL FEES AND CHARGES ON A ROUTINE BASIS ANY TIME DURING A YEAR AS A PURELY MANAGEMENT BASIS.
+! EMPHASISE ON A ROUTINE BASIS, BECAUSE NOT TO KEEP THEM UP TO DATE MEANS THAT USERS ARE CROSS-SUBSIDISED FROM GENERAL REVENUE OR CROSS-SUBSIDISED TO A GREATER EXTENT THAN INTENDED,+ HE STRESSED.
SIR PHILIP ADDED THAT THIS WAS PARTICULARLY OBJECTIONABLE IN PRINCIPLE IN THE CASE OF FEES AND CHARGES PAYABLE BY BUSINESS ENTERPRISES.
THOUGH IT WAS APPARENT THAT VARIOUS OPTIONS WERE AVAILABLE TO FINANCE ANY NECESSARY AND DESIRABLE TAX CONCESSIONS AND TO CORRECT THE FALLING TREND OF RECURRENT REVENUE TO TOTAL EXPENDITURE, HE SAID:
+HOWEVER, I DO NOT INTEND TO INVOKE ANY OF THESE OPTIONS AT THIS TIME IN VIEW OF THE PRESENT STATE OF OUR PUBLIC FINANCES GENERALLY, EVEN THOUGH IT COULD BE ARGUED THAT, TO DO SO, WOULD BE JUSTIFIED ON MACRO-ECONOMIC GROUNDS.+
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