16
WEDNESDAY, APRIL 17, 1991
"MEMBERS WILL HAVE NOTED THAT THE AD-VALOREM RATE HAS NOT BEEN CHANGED. THE DUTY ON A CAN OF ONE OF THE POPULAR BRANDS OF BEER SOLD IN THE SUPERMARKETS HAS INCREASED BY JUST 10 CENTS.
HE SAID HE HAD PUT UP THE DUTY ON COSMETICS FROM 25 PER CENT TO 30 PER CENT.
THUS ON A BOTTLE OF HAIR CONDITIONER WHICH USED TO COST $37.50, THE DUTY HAD INCREASED BY $1.50, A FOUR PER CENT INCREASE.
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'EVEN IF ONE REGARDS THESE ITEMS AS NECESSITIES, IT IS HARD ACCEPT THAT SUCH INCREASES HAVE A SERIOUS IMPACT ON PEOPLE'S STANDARD OF LIVING, HE ADDED.
AS REGARDS THE INCREASE IN THE AIRPORT DEPARTURE TAX, SIR PIERS SAID A FOUR-DAY AIR AND HOTEL HOLIDAY PACKAGE FOR TWO TO PHUKET WHICH COSTS $3,000 PER PERSON HAD GONE UP BY $50 OR 1.6 PER CENT AS A RESULT.
"FOR THOSE WHO TAKE THEIR TWO CHILDREN WITH THEM, IT HAS NOT GONE UP AT ALL, HE SAID.
HE ADDED THAT THE AVERAGE TOURIST COMING HERE SPENT ABOUT $5,000 NOT INCLUDING HIS AIR FARE.
TAX.
HIS STAY WAS MADE ONE PER CENT MORE EXPENSIVE BY THE INCREASED
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"BUT IS THIS REALLY AN INCREASE THAT HITS THE POOR? HE ASKED.
SIR PIERS SAID THERE HAD BEEN DIRE WARNINGS ABOUT THE EFFECTS ON HONG KONG'S TOURIST INDUSTRY OF INCREASES IN AIRPORT DEPARTURE TAX.
"1 HAVE ALREADY POINTED OUT WHAT A MINISCULE PROPORTION OF SPENDING COSTS THIS REPRESENTS FOR LOCAL TRAVELLERS, AND EVEN MORE MINISCULE FOR OVERSEAS TOURISTS.
1 MIGHT BE MORE ALARMED BY THESE WARNINGS IF IT COULD BE SHOWN THAT PREVIOUS INCREASES IN THE TAX PUSHED PASSENGER ARRIVALS AND DEPARTURES DOWN AND REDUCTIONS SENT THEM UP AGAIN, HE SAID.
BUT
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IN FACT,
THE ACTUAL FIGURES SHOWED NOTHING OF THE SORT. PASSENGER MOVEMENTS WENT UP AND UP WHATEVER WE DID WITH THE TAX, SIR PIERS POINTED OUT.
AS TO PROPERTY RATES, SIR PIERS SAID THE REVALUATION OF PROPERTIES WOULD MEAN THAT THE OWNER OF A SMALL FLAT WOULD HAVE TO PAY $38 PER MONTH MORE.
THE
PERIODIC REVISION OF RATEABLE VALUES WAS PROVIDED FOR IN THE RATING ORDINANCE.
"AS J. HAVE PREVIOUSLY EXPLAINED, THE PRIME PURPOSE OF THE EXERCISE 15 NOT TO RAISE REVENUE BUT TO ENSURE THAT THE BURDEN OF CHARGE IS SPREAD ACCORDING TO CURRENT MARKET RENTAL VALUES.
"RATES,
1 MIGHT ADD, ARE A RELATIVELY PROGRESSIVE TAX; THE MORE LUXURIOUS THE PROPERTY, THE HIGHER THE RATES PAID.
/"BUT BECAUSE