28

WEDNESDAY, MAY 9, 1990

YRAR,

ΤΟ RESTORE

SIR PIERS SAID IN OUR MORE DIFFICULT CIRCUMSTANCES THIS CONSIDERED IT NECESSARY TO MAKE AN INTERIM ADJUSTMENT THE YIELD TO SOME EXTENT.

HE

THE EFFECT WILL ONLY BE TO RAISE THE SHARE OF RATES IN TERMS OF OVERALL RENTALS FROM 3.1 PER CENT TO 3.9PER CENT.

"IN MID-1986, IT STOOD AT 4.9PER CENT.

NOT REGARD

THE

"SINCE THOSE ON HIGHER INCOMES TEND TO LIVE IN MORE EXPENSIVE

AND SO ACCOMMODATION

PAY

WOULD MORE IN RATES, I ADJUSTMENT AS REGRESSIVE.

GENERAL

RATE AVERAGE OF

OF THE

"THE

OF 1.5PERCENTAGE POINTS IN INCREASE

THE AMOUNTS, IN DOLLAR TERMS, TO AN ADDITIONAL PAYMENT OF AN ONLY $20 PER MONTH PER HOUSEHOLD FOR THE ROUGHLY 50PER CENT POPULATION ACCOMMODATED IN PUBLIC HOUSING ESTATES," HE SAID.

SIR

SEVERELY

ON HIS PROPOSAL TO INCREASE THE DUTY ON HYDROCARBON OILS, PIERS SAID HE NOTED THAT IT HAD BEEN ATTACKED FOR IMPACTING ON THE LOWER PAID SECTIONS OF THE COMMUNITY,

IN

FORM

"INSOFAR AS

INCREASE PUBLIC BUS FARES ARE CONCERNED, THE FUEL COSTS, AFTER TAKING INTO ACCOUNT THE PUBLIC SUBSIDY IN THE OF THE EXISTING REBATE, IS NOT EXPECTED TO EXCEED AN AVERAGE PER CENT FOR KMB AND 1.7 PER CENT FOR CMB FARES, OR ROUGHLY THREE FOUR CENTS PER PASSENGER TRIP, HE SAID.

"

OF TWO

ΤΟ

TAX

SIR PIERS ALSO POINTED OUT THAT THE BURDEN OF HIGHER FUEL FOR TAXI DRIVERS HAD BEEN DEALT WITH BY AN APPROVED INCREASE IN FARES.

WHICH THE PIERS POINTED

BUY

ALCOHOL,

AS FOR THE REMAINING INDIRECT TAXES ON COMMODITIES MAN IN THE STREET WAS FACED WITH PAYING DIRECTLY, SIR OUT

"THERE IS NO OBLIGATION TO THAT A CHOICE EXISTED. TOBACCO OR NEW CARS, HE SAID.

"I

SIR PIERS NOTED THAT IN A LOW DIRECT TAXATION REGIME LIKE KONG, IT WAS IMPORTANT ALSO THAT APPROPRIATE OPPORTUNITIES WERE ΤΟ

REVENUE THROUGH FEES AND CHARGES FOR GOVERNMENT RAISE INCLUDING THOSE OPERATED AS PUBLIC UTILITY UNDERTAKINGS.

HONG TAKEN

SERVICES,

"WE HAVE ALWAYS ATTEMPTED TO ENSURE THAT THE COSTS OF PROVISION OF SERVICES ARE RECOVERED THROUGH THE CHARGES LEVIED.

"WE

MUST ALSO BE PREPARED TO USE FEES AND CHARGES FOR FISCAL PURPOSES WHERE THAT IS APPROPRIATE," HE SAID.

"BUT HAVING SAID THIS, WE SHALL CONTINUE TO TAKE CARE THAT WELL- GOVERNMENT SERVICES ARE NOT PRICED OUT OF THE REACH OF THE LESS OFF," SIR PIERS STRESSED.

CITING POLICY ON WATER CHARGES AS AN EXAMPLE, SIR PIERS SAID WATER IN HONG KONG WAS NOT A CHEAP COMMODITY TO PROVIDE.

/SIR PIERS

Page 30Page 31

Share This Page