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WEDNESDAY, FEBRUARY 27, 1985
NEW REVENUE MEASURES CLEARLY INEVITABLE'
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WITH AN OSTENSIBLE DEFICIT OF $2.2 BILLION, NEW REVENUE MEASURES WERE CLEARLY INEVITABLE, THE FINANCIAL SECRETARY SAID TODAY.
REVENUE ESTIMATES FOR 1985-86 AS PRINTED ANTICIPATE TOTAL COLLECTIONS OF $36.2 BILLION, MADE UP OF $33.7 BILLION IN RECURRENT REVENUE AND $2.5 BILLION IN CAPITAL REVENUE- RECURRENT EXPENDITURE IS ESTIMATED AT $29 685 MILLION AND CAPITAL EXPENDITURE AT $8 677 MILLION, TOTALLING $38 362 MILLION.
+RECURRENT REVENUE AT $33.7 BILLION IS ESTIMATED TO INCREASE BY $3.4 BILLION OR 11.3 PER CENT OVER THE REVISED ESTIMATE FOR 1984-85, + SAID SIR JOHN.
IN ADDITION, EARNINGS AND PROFITS TAXES ARE EXPECTED TO YIELD $14.8 BILLION (AN INCREASE OF MORE THAN 14 PER CENT ON 1984-85) REFLECTING THE FULL YEAR IMPACT OF THE INCREASES IN TAX RATES INTRODUCED IN LAST YEAR'S BUDGET, AIDED BY AN IMPROVING ECONOMY, SIR JOHN SAID.
HE SAID INDIRECT TAXES WERE ESTIMATED TO GROW BY 15 PER CENT TO A TOTAL OF $9.7 BILLION DUE MAINLY TO HIGHER YIELDS FROM BETTING TAXES AND STAMP DUTY. FROM ALL OTHER RECURRENT REVENUE. SIR JOHN ANTICIPATED A YIELD OF $9.2 BILLION, AN INCREASE OF ONLY FOUR PER CENT.
CAPITAL REVENUE FOR 1985-86 IS ESTIMATED AT $2.5 BILLION, SAID SIR JOHN.
HE NOTED THAT THE MAJOR ELEMENT WAS STILL LAND REVENUE, ADDING THAT THIS MIGHT HAVE TO BE DIFFERENTLY ACCOUNTED FOR IN THE NEAR FUTURE IN ORDER TO SATISFY REQUIREMENTS OF ANNEX HI TO THE JOINT DECLARATION.
+LAND REVENUE IS ALWAYS DIFFICULT TO ESTIMATE AND IS RENDERED MORE SO IN 1985-86 BY THE NEED TO ESTIMATE THAT PORTION OF THE REVENUE WHICH HAS TO BE ASCRIBED TO THE FUTURE SAR GOVERNMENT,+ SAID SIR JOHN.
+I ESTIMATE THAT GROSS LAND REVENUE IN 1985-86 WILL BE $2 BILLION, OF WHICH ABOUT $300 MILLION WILL BE SET ASIDE FOR THE FUTURE SAR GOVERNMENT LEAVING NET LAND REVENUE OF $1.7 BILLION. +
SIR JOHN SAID THIS GROSS ESTIMATE OF $2 BILLION COMPARED WITH A REVISED ESTIMATE OF $4.2 BILLION IN 1984-85 AND ACTUAL REVENUE OF $2.3 BILLION IN 1983-84.
+AS I WARNED BEFORE, THE LAND REVENUE IN 1984-85 WAS CONSIDERABLY DISTORTED BY THE FINAL INSTALMENT OF $1.9 BILLION IN RESPECT OF EXCHANGE SQUARE, HE SAID.
/HE ADDED