WEDNESDAY, MARCH 4, 1992

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FS PROPOSES REVENUE MEASURES

THE FINANCIAL SECRETARY, THE HON HAMISH MACLEOD, IN HIS BUDGET SPEECH FOR 1992-93 TO THE LEGISLATIVE COUNCIL TODAY (WEDNESDAY) HAD PROPOSED TO EXTEND THE APPLICATION OF STAMP DUTY TO THE SALE OR TRANSFER OF COVERED WARRANTS.

MR MACLEOD SAID THIS WAS A LOGICAL EXTENSION OF HONG KONG'S EXISTING TAX SYSTEM, SINCE WARRANTS WERE A ROUTINELY TRADED FORM OF SECURITY.

THIS MEASURE WILL YIELD AN ADDITIONAL $140 MILLION A YEAR.

THE

AND

HE ALSO REFERRED TO A MEASURE ALREADY PASSED INTO LAW

BY LEGISLATIVE COUNCIL IN WHICH STAMP DUTY WAS IMPOSED ON SALE PURCHASE AGREEMENTS FOR RESIDENTIAL PROPERTY, BY THE STAMP DUTY (AMENDMENT) ORDINANCE 1992.

"THIS MEASURE IS DESIGNED TO CURB SPECULATION IN THE DOMESTIC I ESTIMATE THAT WE WILL OBTAIN AN ADDITIONAL $500 MILLION A YEAR FROM THIS SOURCE, HE SAID.

PROPERTY MARKET.

BETTING TAX

MEANWHILE, THE FINANCIAL SECRETARY PROPOSED TO INCREASE THE TAX FOR STANDARD BETS FROM 10.5% TO 11.5% AND FOR EXOTIC BETS FROM 17% TO 17.5%.

RATE

THESE INCREASES WILL TAKE EFFECT FROM THE BEGINNING OF THE NEXT RACING SEASON.

MR MACLEOD SAID THE JOCKEY CLUB HAD AGREED то BEAR A SIGNIFICANT PROPORTION OF THE COST OF THE MEASURE, AND THERE SHOULD BE

EFFECT ON TURNOVER.

NO

AN ADDITIONAL YIELD OF $390 MILLION IS MEASURE IN 1992-93.

EXPECTED FROM THIS

DUTY ON DIESEL FUEL USED BY PLEASURE BOATS

THE FINANCIAL SECRETARY ALSO PROPOSED TO ELIMINATE AN INCONSISTENCY IN THE EXCISE DUTY SYSTEM AND EXTEND THE REQUIREMENT TO PAY DUTY ON LIGHT DIESEL OIL TO LOCALLY REGISTERED PLEASURE CRAFT, WITH EFFECT FROM JUNE 1 THIS YEAR.

"GIVEN THE RAPID GROWTH IN RECENT YEARS OF THE NUMBER OF PLEASURE CRAFT, MOST OF WHICH USE DIESEL FUEL, I EXPECT AN ADDITIONAL $80 MILLION A YEAR FROM THIS MEASURE. PETROL USED BY SUCH PLEASURE CRAFT IS ALREADY SUBJECT TO DUTY, HE SAID.

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/OTHER INDIRECT

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