27
WEDNESDAY, FEBRUARY 27, 1985
$90M SEEN FROM AIR DEPARTURES
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AN INCREASE IN THE AIR PASSENGER DEPARTURE TAX WOULD PROVIDE ABOUT $90 MILLION IN ADDITIONAL REVENUE FOR 1985-86, SIR JOHN BREMRIDGE SAID.
HE PROPOSED THAT THE CURRENT RATE OF $100 FOR AN ADULT AND $50 FOR A CHILD BE INCREASED TO $120 AND $60 RESPECTIVELY FROM APRIL 1.
SIR JOHN SAID: IN MY 1983 BUDGET I INTRODUCED A NEW TAX ON PASSENGERS DEPARTING FROM HONG KONG BY AIR. AFTER TWO YEARS THE TIME HAS COME TO ADJUST THE LEVEL OF THIS FRUITFUL TAX
IN ORDER TO RESTORE THE PER CAPITA REVENUE YIELD IN REAL TERMS.+
$55M MORE FROM BUSINESS FEES
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AN ADDITIONAL $55 MILLION WOULD BE GENERATED IN 1985-86 BY RAISING THE BUSINESS REGISTRATION FEE, NOW $350, TO $500 FROM APRIL 1, SIR JOHN BREMRIDGE SAID.
EXPLAINING THIS INCREASE IN INDIRECT TAXATION, SIR JOHN SAID: THE ANNUAL CHARGE IS CURRENTLY $350, THOUGH SMALL BUSINESSES WHOSE TURNOVER DOES NOT EXCEED A CERTAIN LIMIT ARE EXEMPTED. BY ANY STANDARD THIS FEE REPRESENTS ONLY A FRACTIONAL PERCENTAGE OF NORMAL BUSINESS COST AND, AS I HAVE MENTIONED BEFORE, FOR A VARIETY OF REASONS MANY BUSINESSES IN HONG KONG MAKE LITTLE OR NO CONTRIBUTION TO THE EXCHEQUER+.
SIR JOHN SAID THAT THE $100 LEVY TO ESTABLISH A PROTECTION OF WAGES ON INSOLVENCY FUND WAS WHOLLY UNRELATED TO REVENUE ISSUES.
GOVERNMENT FEES, CHARGES TO YIELD $5.8 BILLION
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AN ESTIMATED $5.8 BILLION WILL BE RAISED FROM GOVERNMENT UTILITIES AND FEES AND CHARGES IN 1985-86, THE FINANCIAL SECRETARY, SIR JOHN BREMRIDGE, SAID IN DELIVERING HIS BUDGET.
THE ESTIMATES LAST YEAR SHOWED REVENUE OF $4.78 BILLION FROM THESE SOURCES, SIR JOHN SAID, BUT NOTED THAT 'OUR LATEST OUTTURN FORECAST SUGGESTS THAT WE WILL EXCEED THIS TARGET BY SOME $260 MILLION'.
/MUCH OF