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WEDNESDAY, MARCH 2, 1988
MR JACOBS SAID SOME HAVE ARGUED THAT A STIMULUS SHOULD BE PROVIDED TO THE MANUFACTURING SECTOR THROUGH AN INCREASE IN CAPITAL ALLOWANCES FOR EXPENDITURE INCURRED ON THE PROVISION OF PLANT AND MACHINERY.
"IN 1987 THERE WAS NO RELUCTANCE ON THE PART OF MANUFACTURERS TO INVEST. WE ARE SEEING MORE AND MORE EFFORT BEING MADE TO INCREASE CAPACITY, IMPROVE PRODUCTIVITY AND ENHANCE PROFITABILITY,
"I DO NOT BELIEVE THAT THE SELECTIVE INDUCEMENT OF AN INCREASE
IN CAPITAL ALLOWANCES IS WHAT IS NEEDED THIS TIME, HE SAID.
"INSTEAD, I CONSIDER THAT THE PROPOSED REDUCTION
IN THE RATZ OF TAX ON CORPORATE PROFITS WILL PROVIDE APPROPRIATE AND PROPER ENCOURAGEMENT TO ALL THOSE IN BUSINESS.
MR JACOBS SAID THAT THE REDUCTION PROPOSED IN THE STANDARD RATE FROM 16.5 PER TO 15.5 PER CENT CENT WOULD LOWER THE YIELDS FROM PROPERTY TAX, INTEREST TAX AND PROFITS TAX PAID BY UNINCORPORATED BUSINESSES.
"TAKEN TOGETHER, I ESTIMATE THAT THIS WILL COST A FURTHER $70 MILLION IN 1988-89 AND $160 MILLION IN A FULL YEAR.
"THE NEW STANDARD RATE WILL APPLY ΤΟ PROVISIONAL AND FINAL PROFITS TAX AND PROPERTY TAX ASSESSMENTS FOR 1988-89; IT WILL APPLY ALSO TO FINAL INTEREST TAX ASSESSMENTS FOR THAT YEAR, MR JACOBS SAID.
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ON STAMP DUTY, THE FINANCIAL SECRETARY SAID THE CONCESSION WAS DESIGNED TO FACILITATE WIDER HOME OWNERSHIP AND ASSIST THE MIDDLE INCOME GROUP.
"AT PRESENT, THE RATE OF DUTY PAYABLE ON ACCORDING TO THE SALE PRICE OR MARKET VALUE WHICHEVER IS THE HIGHER.
ASSIGNMENTS VARIKS OF THE PROPERTY,
"I INTEND TO RELAX THE RATES APPLICABLE ΤΟ SMALL AND MEDIUM-SIZED PROPERTIES, MR JACOBS SAID.
+
AT
"I PROPOSE WITH EFECT FROM APRIL 1 TO LIFT THE THRESHOLD WHICH 2.75 PER CENT RATE BEGINS TO APPLY FROM THE PRESENT $500,000 TO $1.5 MILLION; TO CUT THE RATE OF DUTY FOR PROPERTIES COSTING BETWEEN $250,000 AND $1.5 MILLION; AND TO INTRODUCE A NEW FORMULA FOR DETERMINING MARGINAL RELIEF, WHICH WILL PROVIDE A GREATER BENEFIT TO DUTY PAYERS AND HAVE THE EFFECT OF PUSHING THE VARIOUS DUTY RATE THRESHOLD UPWARD, HE EXPLAINED.
"I ESTIMATE THAT SOME 100,000 PERSONS WILL BENEFIT FROM THESE PROPOSALS, WHICH WILL COST A FURTHER $300 MILLION IN 1988-89," HE SAID.
MR JACOBS