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Revenue proposals to reward enterprise and promote equity
In framing the revenue proposals this year, the Financial Secretary, the Hon Sir Hamish Macleod, said he had had very much in mind the principles of rewarding enterprise and promoting equity as in his last three Budget Speeches.
Speaking in the Legislative Council today (Wednesday), he noted that the benefits to the taxpayers of the reductions and reforms of the past three years had been very considerable.
"Obviously, the scope for reform of our already very simple tax system is limited, as is the scope for further reductions if the revenue base is not to be unduly eroded.
"In addition, during the transition it is particularly desirable to keep our reserves at a healthy level.
"This has to be a key element in our budget strategy.
"My consultations with Members of this Council suggest that the community shares this judgment.
"I therefore believe that a cautious approach is justified in considering tax measures which would draw on the reserves.
"Nevertheless, I am still in a position to be able to recommend to this Council a number of useful tax concessions, whilst at the same time forecasting higher reserves.
"To put it the other way round, I am sure it is right that, having secured the funding of the Goverment's programmes, both capital and recurrent, and having added significantly to the already substantial reserves, we should take any remaining opportunity to reduce the tax burden, especially on those with special needs," Sir Hamish said.
End/Wednesday, March 1, 1995