OTHER INDIRECT TAXES
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WEDNESDAY, MARCH 4, 1992
THE FINANCIAL SECRETARY DID NOT PROPOSE ANY OTHER INCREASES REAL TERMS IN INDIRECT TAXATION.
IN
NEVERTHELESS, MR MACLEOD SAID THOSE DUTIES WHICH WERE ASSESSED ON A SPECIFIC BASIS, AS OPPOSED TO AD VALOREM LEVIES, WOULD REQUIRE ADJUSTMENT IF REAL YIELDS WERE NOT TO DIMINISH BECAUSE OF INFLATION.
HE PROPOSED A 10%
INCREASE IN THE DUTIES ON TOBACCO,
HYDROCARBON OILS, ALCOHOLIC BEVERAGES AND ALCOHOL.
HE SAID HE DID NOT INTEND TO PROPOSE ANY INCREASES IN SUCH GOVERNMENT UTILITY CHARGES AS WATER AND POSTAL CHARGES, TUNNEL TOLLS AND AIRPORT AND FERRY FEES.
"WE WILL NEED TO CONSIDER APPROPRIATE INCREASES ΤΟ THESE CHARGES DURING THE COURSE OF THIS YEAR. BUT THE TIMING WILL BE CAREFULLY PHASED, SO THAT THEY ARE NOT BUNCHED TOGETHER AND THE IMPACT ON CONSUMERS CAN BE MINIMISED.
"SIMILAR ADJUSTMENTS MAY BE NEEDED TO TAX-LOADED FEES, SUCH AS VEHICLE LICENCE AND COMPANY REGISTRATION FEES. AGAIN, THE TIMING OF ANY CHANGES WILL BE LOOKED AT CAREFULLY, HE SAID.
THE FINANCIAL SECRETARY REMINDED THAT THE MORATORIUM GOVERNMENT DEPARTMENTAL FEES EXPIRED ON FEBRUARY 29.
ON
"THE VAST MAJORITY OF THESE ROUTINE FEES ARE DESIGNED TO DO NO THAN RECOVER COSTS AND HAVE NO IMPACT ON THE CONSUMER PRICE
MORE INDICES.
"NEVERTHELESS, THEY WERE FROZEN TEMPORARILY TO HELP BREAK THE CYCLE OF INFLATIONARY EXPECTATION. THE INTENDED EFFECT HAS BEEN LARGELY ACHIEVED, AND ROUTINE CONSIDERATION OF ADJUSTMENTS
TO THESE FEES WILL NOW RESUME. BUT ANY CHANGES WILL BE PHASED IN GRADUALLY, HE SAID.
TAX CONCESSIONS ON NON-LUXURY ITEMS AND SALARIES TAX
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THE FINANCIAL SECRETARY, THE HON HAMISH MACLEOD, IN HIS BUDGET SPEECH FOR 1992-93, HAD PROPOSED TAX CONCESSIONS WITH THE AIMS OF REDUCING OR ABOLISHING TAXES ON CERTAIN NON-LUXURY ITEMS WHICH DIRECTLY AFFECTED THE COST OF LIVING OF ORDINARY FAMILIES AND THE BURDEN ON THOSE LIABLE TO SALARIES TAX.
SALARIES TAX
BASING
THE FINANCIAL SECRETARY PROPOSED ACROSS-THE-BOARD INCREASES PERSONAL ALLOWANCES.
IN
/HE PROPOSED