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WEDNESDAY, FEBRUARY 29, 1984
THE NEW STANDARD RATE OF 17 PER CENT WILL APPLY TO
PROVISIONAL AND FINAL ASSESSMENTS FOR 1984-85 IN RESPECT OF PROF ITS TAX ON UNINCORPORATED BUSINESSES, SALARIES TAX AND PROPERTY TAX- AND TO FINAL PERSONAL AND INTEREST TAX ASSESSMENTS FOR THAT YEAR ALSO.
THE NEW CORPORATE RATE OF 18.5 PER CENT WILL ALSO APPLY TO CORPORATIONS' PROVISIONAL AND FINAL ASSESSMENTS FOR 1984-85.
THE PROPOSED INCREASES ARE ESTIMATED TO PRODUCE IN 1984-85 AN ADDITIONAL $903 MILLION FROM EARNINGS AND PROFITS TAX AFTER TAK ING INTO ACCOUNT THE TWO INSTALMENTS SYSTEM. IN A FULL YEAR, AT PRESENT LEVELS OF CHARGEABLE INCOME AND PROFITS, THE INCREMENT TO THE REVENUE SHOULD OF THE ORDER OF $1.32 BILLION, SIR JOHN SAID.
+ I HOPE VERY MUCH THAT THIS SECOND WIND PLUS HIGHER YIELDS AS THE ECONOMY IMPROVES WILL ENABLE US TO FACE 1985-86 WITHOUT FURTHER DIRECT TAX INCREASES, HE ADDED.
SIR JOHN SAID THAT IN THE AREA OF PERSONAL TAXATION, HE ESTIMATED THE NEW STANDARD RATE WILL AFFECT SOME 30 000 SALARIES TAXPAYERS +WHO ARE ARGUABLY BEST PLACED TO AFFORD IT.+: ABOUT 18 500 WOULD CONTINUE TO PAY AT THE STANDARD RATE BUT AT THE NEW LEVEL, AND ABOUT 11 500 WOULD PAY MORE TAX AT THE MARGINAL RATES, BUT AT AN EFFECTIVE RATE OF TAX (ON GROSS INCOME) BELOW THE NEW STANDARD RATE.
PROPOSED CROSS-HARBOUR TUNNEL TAX +OF TRANSPORT NATURE+
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A BILL WILL SHORTLY BE INTRODUCED INTO THE LEGISLATIVE COUNCIL PROPOSING A NEW TAX RANGING FROM $2 TO $5 ON SOME USERS OF THE CROSS-HARBOUR TUNNEL.
THE FINANCIAL SECRETARY, SIR JOHN BREMRIDGE, TOLD THE COUNCIL TODAY WHEN PRESENTING HIS 1984-85 BUDGET, THERE WOULD ALSO BE INCREASES IN BUOYS AND ANCHORAGE FEES, FEES FOR DEPOSIT-TAKING INSTITUTIONS, AND TOLLS FOR THE GOVERNMENT-OPERATED LION ROCK TUNNEL.
J
HE SAID THE BILL ON THE CROSS HARBOUR TUNNEL WOULD BE INTRODUCED AFTER MEMBERS HAD SPOKEN IN THE DEBATE ON HIS BUDGET.
+THIS MEASURE STRICTLY SPEAKING IS OF A TRANSPORT NATURE BECAUSE ITS PRIMARY FUNCTION IS TO ALLEVIATE CONGESTION. BECAUSE, HOWEVER, IT ALSO HAS SIGNIFICANT BUDGETARY IMPLICATIONS IT IS APPROPRIATE THAT NT BE CONSIDERED FIRST AS PART OF MY BUDGETARY. PROPOSALS.+
SIR JOHN SAID A FULL EXPLANATION WOULD BE GIVEN WHEN THE BILL IS INTRODUCED, AND THERE WOULD THEN BE OPPORTUNITY FOR FURTHER DEBATE, +BUT IN BRIEF, THERE IS CLEARLY NOW A PERSUASIVE ARGUMENT FOR USING FISCAL MEANS TO DETER NON-ESSENTIAL USAGE OF THE TUNNEL ON TRAFFIC MANAGEMENT GROUNDS.+
/HE SAID