WEDNESDAY, APRIL 17, 1985
10
NEED FOR CONCESSION CUT OBVIOUS
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CUTTING BACK ON THE DUTY FREE CONCESSION ON ALCOHOL AND CIGARETTES MADE NO FRIENDS, BUT THE NEED WAS OBVIOUS, THE FINANCIAL SECRETARY, THE HON SIR JOHN BREMRIDGE, SAID TODAY.
HE POINTED OUT HOWEVER THAT ON IMPLEMENTATION OF THE MEASURES HE HAD HAD TO ACCEPT THE PRAGMATIC ADVICE OF THE COMMISSIONER OF CUSTOMS AND EXCISE WHO HAD CLOSELY CONSULTED WITH THE DIRECTOR OF IMMIGRATION.
+AS 65 000 PEOPLE HAVE ENTERED AT LO WU IN ONE DAY EVEN A 20 SECONDS INDIVIDUAL DELAY WHILE EXAMINING PASSPORTS WOULD BE INTOLERABLE.
+1 WOULD ASK MEMBERS AND PARTICULARLY MRS SELINA CHOW TO SEE HOW THE NEW MEASURES WORK. THEN WHEN WE HAVE GOT A LITTLE EXPERIENCE WE CAN SEE WHETHER SENSIBLE CHANGES CAN BE MADE,+ HE SAID.
SIR JOHN EMPHASISED THAT HE WAS ENTIRELY OPEN MINDED PROVIDED THAT THE REVENUE DID NOT SUFFER AND THAT DELAYS DID NOT RESULT.
+ I DO NOT BELIEVE IN CONTROL FOR CONTROL'S SAKE, BUT AS SUGGESTED BY MRS CHOW, MR Y.L. CHEUNG AND MRS PAULINĖ NG WE SHALL ALSO CONSIDER DUTY-FREE CONCESSIONS ON COSMETICS,+ HE SAID.
ON THE AIR PASSENGER DEPARTURE TAX, SIR JOHN SAID THE INCREASE WAS JUST TO PRESERVE THE YIELD IN REAL TERMS.
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+I NOTED WITH CYNICAL DETACHMENT THE REPORTED VIEWS OF THE HOTELS ASSOCIATION. DESPITE THEIR OBJECTIONS IN 1983 WE RAISED THE HOTEL TAX FROM FOUR PER CENT TO FIVE PER CENT ALL OF WHICH GOES TO SUPPORT ON THE IR BEHALF NOT GOVERNMENT REVENUE BUT THE TOURIST ASSOCIATION - AND INTRODUCED THE AIR PASSENGER DEPARTURE TAX.
+SUBSEQUENTLY (IF NOT CONSEQUENTLY) TOURISM HAS BOOMED.
+HOTEL ROOM, FOOD AND BEVERAGE RATES HAVE THERE AFTER BEEN INCREASED CUMULATIVELY BY ABOUT 15 PER CENT TO 20 PER CENT PER YEAR. IN SOME TOP HOTELS THE INCREASES HAVE BEEN HIGHER. THE TREND CONTINUES, THIS HITS THE TOURIST FAR MORE THAN THE BURDEN OF INCREASED TAXES AND DUTIES.+
WHILE CHARGING WHAT THE MARKET WOULD BEAR MIGHT MAKE SHORT TERM ECONOMIC SENSE, IT WAS FOR MANAGEMENTS TO DECIDE, SIR JOHN NOTED HOWEVER THAT IF IN THE LONG TERM IT PRICED HONG KONG OUT THE GOVERNMENT WOULD NOT BE BLAMED.
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