THURSDAY, MARCH 4, 1993
18
QUESTION:
THAT IS NOT FAIR, WHAT I AM SAYING IS, LET'S SAY A PERSON WHO IS RECEIVING $825 A MONTH, AFTER ADJUSTMENT HOW MUCH WILL HE RECEIVE, THAT IS MY QUESTION?
FS:
IT IS DIFFICULT TO ANSWER YOUR QUESTION IN ANY OTHER WAY THAN TO SAY THAT THE AVERAGE PAYMENT WILL BE $2,000, BECAUSE WE ARE DEALING HERE WITH LARGE NUMBERS OF PEOPLE AND A RANGE OF PAYMENTS. IT SEEMS TO ME ENTIRELY FAIR, IF WE ARE GENERALISING ON THE FIGURE, TO USE AN AVERAGE PAYMENT.
QUESTION:
YES, INDEED, I WOULD LIKE TO GO ON. WHY IS IT THAT WE HAVE то PAY PROVISIONAL TAX? ASSUMING THAT I DO NOT MAKE AS MUCH MONEY NEXT YEAR, WHAT CAN I DO?
FS:
+
WELL I THINK HERE WE ARE QUITE FORTUNATE TO HAVE A LOW TAX RATE WITH ONLY ABOUT 50 PER CENT OF THE WORKING FORCE PAYING TAX AT ALL. I DON'T SEE ANY OTHER WAY OF DOING THE TAXATION THAN THE WAY WE DO IT, UNLESS WE HAD A SYSTEM WHERE YOU PAID EVERY MONTH, AND I BELIEVE THAT WOULD BE QUITE CUMBERSOME AND NOT PARTICULARLY WELCOME TO EITHER EMPLOYEES OR EMPLOYERS. SO AT THE MOMENT WE HAVE TO DO IT BY AN ANNUAL PAYMENT AND THAT PAYMENT HAS TO BE BASED ON AN ESTIMATE.
QUESTION:
GOOD MORNING, FINANCIAL SECRETARY. FIRST, IN THIS YEAR'S BUDGET, IT IS INDEED A VERY GOOD BUDGET, PARTICULARLY ΤΟ THE MIDDLE AND LOW INCOME GROUPS, IT SEEMS THAT WE ARE GIVEN AN AMNESTY. WHY IS IT THAT THE BUDGET WAS RATHER TIGHT IN THE PAST TWO YEARS? WE WERE ALMOST STIFLED. DOES IT MEAN THAT THOSE TWO BUDGETS WERE NOT GOOD ONES? THAT IS THE FIRST QUESTION.
FS:
THANK YOU FOR YOUR KIND REMARKS. I SUPPOSE THAT EACH BUDGET, WE HAVE TO LOOK AT THE SITUATION WHICH FACES US AND OF COURSE THIS YEAR WE HAVE HAD A COMBINATION OF TWO THINGS. FIRST OF ALL, WE HAD A HIGHER SURPLUS THAN WE EXPECTED FOR THIS YEAR. SECONDLY, AND PERHAPS AS IMPORTANTLY, OUR ECONOMIC GROWTH CONTINUES TO PICK UP VERY WELL, WE ARE NOW FORECASTING 5.5 PER CENT FOR 1993. 30 THE COMBINATION OF THOSE TWO THINGS HAS MEANT THAT WE CAN INCREASE SPENDING AND STILL HAVE RESERVES WHICH ARE INCREASING IN TERMS OF '96-
'97.
QUESTION:
MY SECOND QUESTION NOW.
COSMETICS TAX AND ENTERTAINMENT TAX WILL BE REMOVED, WHY IS IT THAT TAX ON FUEL WILL BE INCREASED? WILL THAT LEAD TO AN INCREASE IN FARES ON PUBLIC TRANSPORT, IS THAT THE CASE?
FS;
I HAVE BEEN VERY CAREFUL ON THE THREE TAXES WHICH WE DID INCREASE SIMPLY TO RESTRICT IT TO COST OF LIVING. THERE IS NO REAL INCREASE IN THOSE TAXES, IT SIMPLY KEEPS IT UP WITH INFLATION, SO I AM HOPEFUL THAT THAT WILL NOT HAVE MUCH EFFECT ON FARES. ALSO, YOU MAY REMEMBER THAT LAST YEAR WE REMOVED FUEL TAX SO FAR AS IT AFFECTS BUSES, SO THAT SHOULD NOT AFFECT BUS-FARES.
CUMMINGS:
CAN I PICK UP A MORE NEGATIVE SIDE OF IT. PEOPLE HAVE SAID: VERY NICE, THE MIDDLE CLASS, THE SANDWICH CLASS, THE SALARIES TAX PAYERS AND SO ON, HAVE GOT A GOOD BREAK, BUT THERE IS NO BREAK AT ALL FOR BUSINESS.
/ES
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