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WEDNESDAY, MARCH 7, 1990
SIR
THESE PROPOSALS MARKETS, FOR TO GIVE ANY
PIERS SAID WHILE HE COULD APPRECIATE THAT MIGHT BE OF SOME ATTRACTION TO THOSE INVESTING IN OUR FISCAL REASONS
AT PRESENT WAS UNABLE THE GOVERNMENT CONCESSION ON THE DUTY ITSELF.
"FURTHERMORE, I WOULD NEED TO BE CONVINCED THAT THE PAYMENT
NOT CREATE LOOPHOLES, ONE DUTY BY
PARTY WOULD UNACCEPTABLE EROSION OF STAMP DUTY REVENUE.
THE
"'I
SHALL, HOWEVER,
BE EXAMINING
BOTH PROPOSALS DETAIL, BECAUSE I AM CONSCIOUS OF THE POSSIBLE POTENTIAL DEVELOPMENT, SIR PIERS SAID.
OF CAUSING AN
IN GREATER FOR MARKET
$800 MILLION IN DIRECT TAX CONCESSIONS
*
THE BUDGET'S REVENUE PROPOSALS PACKAGE INCLUDES A NUMBER OF REVENUE RAISING MEASURES WHICH WILL YIELD SOME $3.9 BILLION IN 1990-91 AND APPROXIMATELY $4.7 BILLION IN A FULL YEAR, THE FINANCIAL SECRETARY, THE HON SIR PIERS JACOBS, SAID TODAY.
SIR PIERS SAID HE ALSO PROPOSED TO GRANT A NUMBER OF TAX CONCESSIONS. IN RESPECT OF DIRECT TAXES, ESTIMATED TO COST $800 MILLION IN 1990-91, AND $1.1 BILLION IN A FULL YEAR.
**THE NET EFFECT WILL BE TO PRODUCE ADDITIONAL REVENUE OF $3.1 BILLION FOR 1990-91. THESE PROPOSALS WILL THEREFORE CONVERT THE ESTIMATED OVERALL DEFICIT OF $2.4 BILLION TO AN OVERALL SURPLUS OF $720 MILLION.
"THE PROPOSALS WILL. IN ADDITION, ACHIEVE THE OBJECTIVE OF REDUCING THE PERCENTAGE OF TOTAL TAX REVENUE DERIVED FROM DIRECT TAXES, FROM 65 PER CENT TO 62 PER CENT," HE SAID.
THE FINANCIAL SECRETARY SAID HIGHER INDIRECT TAXES, BY THEIR NATURE, COULD HAVE SOME INFLATIONARY IMPACT, BUT HE WAS SATISFIED THAT THE PACKAGE HE HAD PROPOSED WOULD HAVE ONLY A MARGINAL EFFECT.
TO
"I CONSIDER THE ALTERNATIVE OF RAISING THE SAME AMOUNT OF REVENUE FROM HIGHER DIRECT TAXES ON BALANCE TO BE LESS DESIRABLE. WE HAVE MANAGED TO REDUCE THE STANDARD RATE OF TAX IN RECENT YEARS. RAISE IT AGAIN COULD ADVERSELY AFFECT INVESTMENT DECISIONS," SIR PIERS SAID.
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