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WEDNESDAY, FEBRUARY 29, 1984
HE ESTIMATED THE NEW CHARGES, TO TAKE EFFECT FROM APRIL 1, WOULD YIELD $14 MILLION, BUT ADDED: WE WILL STILL BE SUBSIDISING HARBOUR USERS.+
SIR JOHN SAID REVIEWS OF OTHER FEES AND CHARGES WOULD CONTINUE DURING THE YEAR AND TWO MAJOR AREAS CURRENTLY UNDER CONSIDERATION WERE IMMIGRATION DEPARTMENT FEES AND WATER CHARGES.
HE RECALLED THAT HIS 1983 BUDGET PROPOSALS INTRODUCED SOME FAIRLY SUBSTANTIAL INCREASES TO CERTAIN FEES AND CHARGES FOR SERVICES PROVIDED BY THE GOVERNMENT, AND IN ADDITION A NUMBER OF FEES AND CHARGES WERE INCREASED DURING 1983 AS PART OF A REGULAR
REVIEW PROGRAMME OF INDIVIDUAL DEPARTMENTS.
+A COMPUTERISED FEES AND CHARGES REVIEW SYSTEM NOW ESTABLISHED PROVIDES THE INFORMATION NECESSARY TO CONTINUE THIS PROCESS AND THUS ENABLES THE INNUMERABLE FEES AND CHARGES TO BE REGULARLY REVIEWED.
+WHERE JUSTIFIED BY RISING COSTS, WHICH CANNOT BE OFFSET TOTALLY OR IN PART BY INCREASED PRODUCTIVITY, PROPOSALS FOR INCREASES FOR FEES AND CHARGES WILL BE MADE DURING THE CURRENT YEAR
THE ESTIMATE OF TOTAL RECURRENT REVENUE DOES NOT ANTICIPATE THESE INCREASES,+ SIR JOHN SAID.
HE SAID THAT LAST YEAR HE BUDGETTED TO RAISE $1.95 BILLION FROM UTILITIES AND $2.53 BILLION FROM FEES AND CHARGES AND INDICATIONS WERE THAT THIS WOULD JUST ABOUT BE ACHIEVED.
TAX PROPOSED ON INTEREST TO BUSINESSES
****
THE FINANCIAL SECRETARY, SIR JOHN BREMRIDGE, PROPOSED TODAY THAT SUMS RECEIVED OR ACCRUING BY WAYS OF INTEREST TO BUSINESSES CARRIED ON IN HONG KONG WILL BE CHARGEABLE TO PROFITS TAX FROM APRIL 1 THIS YEAR.
SIR JOHN SAID THAT THESE SUMS WILL BE TAXED IRRESPECTIVE OF THE CURRENCY IN WHICH THE TRANSACTION IS DENOMINATED AND NOTWITHSTANDING THAT THE MONEYS FOR WHICH THE INTEREST IS RECEIVED OR ACCRUES ARE MADE AVAILABLE TO THE BORROWER OUTSIDE HONG KONG.
AS IT IS INTENDED THAT THE PROPOSAL WILL APPLY ONLY TO INTEREST ACCRUING ON OR AFTER APRIL 1, IT WILL HAVE EFFECT FOR THE FIRST TIME IN RESPECT OF FINAL ASSESSMENTS FOR 1984-85, WHICH ARE GENERALLY NOT DUE FOR PAYMENT UNTIL AFTER MARCH 31, 1985, SIR JOHN POINTED OUT.
BUT HE ESTIMATED THAT IF THE PROPOSAL IS ENACTED, THE REVENUE FROM THIS SOURCE WILL BE SOME $350 MILLION IN 1985-86.-
/+I WOULD