14
WEDNESDAY, MARCH 1, 1989
ANXIOUS
"NEVERTHELESS, I AM
TO REDUCE OUR DEPENDENCE ON SOURCES OF REVENUE WHICH ARE MOST VULNERABLE TO THE VICISSITUDES OF THE ECONOMY," HE SAID.
MR JACOBS SAID THAT WHILE REVENUE CONTINUED TO BE BUOYANT IN LINE WITH THE PERFORMANCE OF THE ECONOMY. THE RATES OF ECONOMIC GROWTH SEEN IN THE LAST THREE YEARS COULD NOT BE EXPECTED TO CONTINUR UNABATED.
"MY PLANS FOR REVENUE ARE AS USUAL BASED ON AN ASSESSMENT OF THE POSITION OVER THE NEXT FEW YEARS, HE SAID.
"WHILST WE MUST AVOID ADDING TO INFLATIONARY IS SOME SCOPE FOR LOWERING THE TAX BURDEN.
M
PRESSURES THERE
MR JACOBS POINTED OUT THAT LAST YEAR WHEN DISCUSSING THE VALUB OF A WIDER AND MORE STABLE TAX BASE HE HAD INFORMED MEMBERS THAT A FORM OF SALES TAX, THOUGH PROBABLY NOT AT A RETAIL LEVEL, BEST MET THE CRITERIA OUTLINED.
"WE HAVE NOW CARRIED OUT CONSIDERABLY PREPARING A CONSULTATIVE DOCUMENT, HE SAID.
++
MORE RESEARCH AND ARE
"WE SHOULD BE IN A POSITION TO ISSUE THIS DOCUMENT TO A NUMBER OF PROFESSIONAL BODIES AND OTHER ORGANISATIONS TOWARDS THE MIDDLE OF THIS YEAR.
"THE PURPOSE OF THIS CONSULTATIVE DOCUMENT WILL SIMPLY BE TO ENABLE ME TO EXAMINE, WITH THE ASSISTANCE OF THOSE TO WHOM THE DOCUMENT WILL BE ISSUED, THE TECHNICAL ASPECTS OF TAX DIVERSIFICATION AND ANY POSSIBLE DIFFICULTIES IN MY PROPOSALS." MR JACOBS SAID.
"I SHALL NOT GO OVER ALL THE ARGUMENTS AT THIS STAGE BUT I WOULD LIKE TO REPEAT THE CRITERIA THAT I CONSIDER MUST BE MET IF WE ARE TO INTRODUCE ANY INDIRECT TAX OF THE NATURE THAT I HAVE DESCRIBED, HE SAID.
..
'FIRST, SUCH A TAX
SHOULD PRODUCE A STABLE AND WORTHWHILE REVENUE YIELD AT A LOW TAX RATE: SECONDLY, IT SHOULD CAUSE MINIMAL DISTORTION TO THE ECONOMY; AND THIRDLY, IT SHOULD BE SIMPLE AND CHEAP
TO ADMINISTER.
"THE TYPE OF SALES TAX THAT I AM EXAMINING IS A TAX AT THE WHOLESALE LEVEL AND OUR RESEARCHES SO FAR HAVE INDICATED THAT SUCH A TAX DOES, INDEED, MEET THE CRITERIA THAT I HAVE MENTIONED. 中甲
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