5
WEDNESDAY, MARCH 30, 1994
INDEED, THIS RATIO WAS INTRODUCED AS A CRUDE WAY ΤΟ MEASURE WHETHER THE REVENUE BASE WAS BECOMING MORE OR LESS ROBUST. THE THEORY WENT THAT IF THE PROPORTION OF INDIRECT TAXES WAS INCREASING, THE REVENUE WAS MORE ROBUST.
THE PROBLEM IS THAT THIS HAS PROVED TOO CRUDE A MEASURE TO BE VERY VALUABLE. INDIRECT TAXES DO NOT NECESSARILY CORRELATE WITH STABLE REVENUE, NOR DIRECT TAXES WITH UNSTABLE REVENUE.
SALARIES TAX, WHICH IS DIRECT, HAS BEEN STEADY, WHEREAS VEHICLE FIRST REGISTRATION TAX, WHICH IS A CLASSIC INDIRECT
TAX, HAS BEEN FLUCTUATING VERY CONSIDERABLY.
"THAT IS THE REASON I CEASED TO REFER TO THIS RATIO SOME BUDGETS AGO," SIR HAMISH SAID.
OF
HE SAID THE GOVERNMENT WAS IN THE "RARE AND ENVIABLE" POSITION BEING ABLE TO RETURN SOME OF THE CONSIDERABLE WEALTH TO ITS TAXPAYERS.
"I THINK ONE WOULD NEED SOME EXTRAORDINARILY GOOD ARGUMENTS TO TRY TO ARGUE AGAINST THAT.' +
FS AIMS TO SOFTEN LARGE RATES INCREASE
THE FINANCIAL SECRETARY, THE HON SIR HAMISH MACLEOD, SAID TODAY (WEDNESDAY) HE WOULD LOOK FURTHER AT THE SUGGESTION THAT IN FUTURE THE GOVERNMENT SHOULD INDEX THE RATEABLE VALUES IN BETWEEN REVALUATION YEARS.
THIS IS TO SOFTEN THE IMPACT OF ANY LARGE INCREASE FOLLOWING A GENERAL REVALUATION.
IMMEDIATELY
"WE SHALL FIND A SATISFACTORY SOLUTION AS TO HOW BEST TO HANDLE REVISIONS IN THE COMING YEARS THROUGH FURTHER DISCUSSIONS WITH
RATES MEMBERS.
FURTHER EXPLAINING HIS THINKING ON RATES REVALUATION WHEN CONCLUDING HIS BUDGET DEBATE IN THE LEGISLATIVE COUNCIL, SIR, HAMISH SAID THE PURPOSE OF THE GENERAL REVALUATION WAS ΤΟ REASSESS THE RATEABLE VALUES OF PROPERTIES SO THAT RATES FELL EQUITABLY AMONG RATEPAYERS IN PROPORTION TO THE UP-TO-DATE RENTAL VALUES OF THEIR PROPERTIES.
THIS TRIENNIAL EXERCISE HAS BECOME AN ACCEPTED BOTH LEGISLATORS AND THE GENERAL PUBLIC, HE SAID.
PRACTICE
WITH
SOURCE
THE
AS A STABLE AND BROADLY-BASED TAX, RATES ARE A RELIABLE OF REVENUE AND HAVE OVER THE YEARS MADE A STEADY CONTRIBUTION TO PUBLIC FINANCES, THE FINANCIAL SECRETARY STRESSED.
/HE FOUND