WEDNESDAY, APRIL 23, 1986
1985-86 SURPLUS RISES TO ABOUT $1.2 BILLION
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THE SURPLUS ON THE GENERAL REVENUE ACCOUNT FOR 1985-86 18 NOW EXPECTED TO BE AROUND $1.2 BILLION INSTEAD OF $98 MILLION, THE FINANCIAL SECRETARY, THE HON SIR JOHN BREMRIDGE, TOLD THE LEGISLATIVE COUNCIL TODAY (WEDNESDAY).
SIR JOHN GAVE THE UPDATED FIGURE FOR 1985-86 WHEN CONCLUDING THE DEBATE ON THE 1986-87 BUDGET.
HE POINTED OUT THAT IN HIS BUDGET SPEECH, HE HAD INDICATED THAT SOME OF THE REVENUE FORECASTS MIGHT PROVĚ TO BE TOO CONSERVATIVE AND THAT THEY HAD ALSO BEEN CAUTIOUS ABOUT THE IMPACT OF THE FALL IN THE ECONOMIC GROWTH RATE IN 1985 ON PROFITS TAX AND RELATED AREAS OF REVENUE.
+ BOTH THESE OBSERVATIONS HAVE SUBSEQUENTLY TURNED OUT TO BE RIGHT AND THE MAJOR AREAS REQUIRING UPDATING ARE INDEED IN RESPECT OF INCREASED LAND REVENUE AND IMPROVED YIELDS FROM PROFITS TAXES,+ HE SAID.
IT HAD RECENTLY BEEN AGREED, AFTER THE BUDGET SPEECH WAS PREPARED, THAT THE REVENUE FROM CERTAIN LAND TRANSACTIONS WHICH HAD BEEN DECIDED UPON PRIOR TO MAY 27, 1985 NEED NOT BE SHARED BETWEEN THE FUTURE SAR GOVERNMENT AND THE HONG KONG GOVERNMENT, HE SAID.
AS A RESULT, APPROXIMATELY $250 MILLION THAT RELATED TO THESE TRANSACTIONS HAD NOW BEEN CREDITED TO THE GENERAL REVENUE ACCOUNT INSTEAD OF TO THE CAPITAL WORKS RESERVE FUND.
SIR JOHN SAID THE AMOUNT OF TAX COLLECTED HAD EXCEEDED THE REVISED ESTIMATE BY APPROXIMATELY $1 BILLION.
+PROFITS TAX ALONE ACCOUNTS FOR MORE THAN $700 MILLION OF THIS SUM, A GOOD PART OF WHICH IS DUE TO A DECREASE IN HOLD-OVER CLAIMS COMPARED TO WHAT HAD PREVIOUSLY BEEN ANTICIPATED.
+THIS COUPLED WITH AN IMPROVEMENT IN THE COMPETENT PROCESSING AND ISSUE OF PROFITS TAX ASSESSMENTS HAS THUS BOOSTED OUR TAX YIELD SIGNIFICANTLY, HE EXPLAINED.
SIR JOHN SAID ALTHOUGH AN ADDITIONAL $200 MILLION IN EXPENDITURE, INCURRED IN RESPECT OF THE TREGUNTER CASE, PARTLY OFFSET THE EFFECT OF THESE CHANGES, UNEXPECTEDLY NO PROVISION WAS REQUIRED FOR A CIVIL SERVICE PAY ADJUSTMENT.
+THE SURPLUS ON GENERAL REVENUE ACCOUNT FOR 1985-86 IS CONSEQUENTLY EXPECTED TO INCREASE FROM THE $98 MILLION INDICATED IN MY BUDGET SPEECH TO $1 177 MILLION - SAY $1.2 BILLION.
/+THIS REPRESENTS