XN000022-1975-04-03 — Page 5

THURSDAY, APRIL 3, 1975.

MACAU PASSENGER TAX MODIFIED

CONCESSION FOR THOSE TRAVELLING ON CHEAPER TICKETS

***** 22

HONG KONG-MACAU COMMUTERS TRAVELLING ON CHEAPER TICKETS NOT EXCEEDING $12 WILL NOW HAVE TO PAY A PASSENGER TAX OF ONLY $2, INSTEAD OF THE $5 ORIGINALLY PROPOSED BY THE FINANCIAL SECRETARY IN HIS BUDGET SPEECH IN FEBRUARY,

ALL OTHERS, INCLUDING THOSE TRAVELLING ON COMPLIMENTARY TICKETS, WILL HOWEVER HAVE TO PAY THE ORIGINAL $5 CHARGE.

THE NEW PASSENGER CHARGES COME INTO EFFECT ON APRIL 14 THIS YEAR AND WILL REDUCE ESTIMATED REVENUE FROM THIS SOURCE BY ABOUT $500,000, THE HON. PHILIP HADDON-CAVE TOLD COUNCIL TODAY WHEN WINDING UP THE BUDGET DEBATE.

MR. HADDON-CAVE EXPLAINED THAT HE HAD IN MIND CASUAL VISITORS TO AND FROM MACAU WHEN HE FIRST PROPOSED THE $5 PASSENGER CHARGE, BUT HE ACCEPTED THE POINT MADE BY UNOFFICIAL MEMBERS THAT SOME TRAVELLED FOR OTHER REASONS AND THE CONCESSIONARY CHARGE, HE SAID, WAS TO CATER FOR SUCH COMMUTERS.

HE WAS AWARE, HOWEVER, THAT THE MODIFICATION WAS THEORETICALLY OPEN TO ABUSE IN SEVERAL WAYS AND HE WARNED THAT IF THERE WAS ANY ATTEMPT, EITHER BY THE OPERATORS OR DY PASSENGERS, TO EVADE THE NORMAL CHARGE OF $5 +1 SHALL HAVE TO RECONSIDER THE WISDOM OF CONTINUING WITH THE CONCESSIONARY $2 CHARGE.+

MR. HADDON-CAVE AGAIN STRESSED THAT BEFORE PROPOSING THE CHARGE HE HAD SATISFIED HIMSELF THAT IT WOULD NOT RESULT IN MATERIAL DAMAGE TO MACAU,

HE REITERATED, HOWEVER, THAT HE WOULD BE PREPARED TO RECONSIDER THE TAX-LOADING ELEMENT IN THE CHARGE IF, AFTER A REASONABLE PERIOD OF TIME, HE WAS SATISFIED THAT THE NUMBERS TRAVELLING TO AND FROM MACAU WERE SERIOUSLY AFFECTED.

- 0..

15