PASSENGER CHARGE
WEDNESDAY, FEBRUARY 26, 1973.
TRAVELLERS TO AND FROM MACAU WILL HAVE TO PAY $5, INSTEAD OF THE PRESENT 50 CENTS, AT THE MACAU FERRY TERMINAL AS FROM APRIL 1 THIS YEAR UNDER ANOTHER INCREASE PROPOSED BY THE FINANCIAL SECRETARY.
WHILE HE DID NOT THINK THAT THIS CHARGE WOULD AFFECT TRAVEL TO MACAU, MR. HADDON-CAVE SAID HE DID NOT WISH TO DAMAGE THAT CITY'S PROSPERITY, AND IF IT BECAME APPARENT THAT THE NUMBERS OF TRAVELLERS WERE SERIOUSLY AFFECTED HE WOULD BE PREPARED TO RECONSIDER THE TAX-LOADING ELEMENT OF THIS CHARGE.
CORPORATIONS PROFITS TAX
THE FINANCIAL SECRETARY PROPOSED TO RAISE THE RATE OF TAX ON THE PROFITS OF CORPORATIONS BY ONE-AND-A-HALF PERCENTAGE POINTS, NAMELY FROM 15 PER CENT TO 16-1/2 PER CENT FOR THE YEAR OF ASSESSMENT 1975/76. PROVISIONAL TAX FOR THAT YEAR WOULD ALSO BE CALCULATED AT THE NEW RATE.
+THIS MODEST INCREASE OF 10 PER CENT IN THE RATE,+ HE SAID, +SHOULD PRODUCE $100 MILLION IN 1975/76.+
ASSUMING A COMPANY RETAINS 50 PER CENT OF ITS PROFITS AFTER TAX AT THE PRESENT RATE OF 15 PER CENT, THE NEW RATE OF TAX OF 16-1/2 PER CENT WILL HAVE THE SAME EFFECT ON SHAREHOLDERS AS A WITHHOLDING TAX OF ABOUT 3.5 PER CENT. MR. HADDON-CAVE MADE IT CLEAR, HOWEVER, THAT HE WAS NOT COMMITTING HIMSELF TO A WITHHOLDING TAX OF ONLY 3.5 PER CENT, BUT I AM MAKING THE POINT IN THE HOPE THAT THE PROPOSAL WILL NOT CAST A QUITE UNREALISTIC SHADOW OVER THE STOCK MARKET.+
HE ALSO MADE IT CLEAR THAT A CORPORATION WHICH IS IN A JOINT VENTURE WITH ANOTHER BUSINESS WILL SUFFER TAX AT 16-1/2 PER CENT ON ITS SHARE OF THE PROFITS.
ANOTHER PROPOSAL THE FINANCIAL SECRETARY INTENDS TO PUT BEFORE COUNCIL CONCERNS THE VALUE, FOR SALARIES TAX PURPOSES, OF QUARTERS PROVIDED BY AN EMPLOYER FOR HIS EMPLOYEES.
HE SAID HE INTENDS TO RAISE FROM 7-1/2 PER CENT TO 10 PER CENT THE FIGURE USED IN ASSESSING THE VALUE OF FREE OR SUBSIDISED QUARTERS. THIS HE INTENDED TO DO WITH EFFECT FROM THE FINAL ASSESSMENT FOR 1975/76. THERE WILL BE PROPORTIONATE INCREASES FOR PERSONS OCCUPYING HOTEL, OR HOSTEL ACCOMMODATION. FREE OR SUBSIDISED QUARTERS PROVIDED BY A PERSON ASSOCIATED WITH THE EMPLOYER WILL ALSO BE BROUGHT TO CHARGE.
HE ALSO INDICATED THAT IT MAY BE NECESSARY TO CONSIDER FURTHER INCREASING THE PERCENTAGE AT A LATER DATE.
/PROPRIETORS OF
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