XN000022-1977-03-02 — Page 2

WEDNESDAY, MARCH 2, 1977

FOUR TAX CONCESSIONS PROPOSED

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FOUR SETS OF TAX CONCESSION PROPOSALS CONCERNING GENERAL RATES, PERSONAL TAXATION, STAMP DUTIES AND ESTATE DUTY WERE ANNOUNCED TODAY WHEN THE FINANCIAL SECRETARY, THE HON. PHILIP HADDON-CAVE, PRESENTED THE 1977-78 BUDGET TO THE LEGISLATIVE COUNCIL.

HE SAID THAT THE TOTAL COST OF THESE PROPOSALS TO THE REVENUE IN THE COMING FINANCIAL YEAR WOULD BE ABOUT $127 MILLION, THUS REDUCING ESTIMATED REVENUE FROM $8,412 MILLION TO $8,285 MILLION,

HE ADDED THAT AS ESTIMATED EXPENDITURE IN THE COMING FINANCIAL YEAR WAS $8,245 MILLION, THIS WOULD LEAVE HIM WITH A SMALL SURPLUS OF $40 MILLION.

+SO, EFFECTIVELY, I AM STILL BUDGETTING FOR A BALANCE,+ HE SAID.

GENERAL RATES

MR. HADDON-CAVE ANNOUNCED THAT THE TOTAL RATES PAYABLE IN THE URBAN AREAS IN 1977-78 WOULD BE 11-1/2 PER CENT OF RATEABLE VALUES (THAT IS, 7-1/2 PER CENT GENERAL RATE, PLUS FOUR PER CENT URBAN COUNCIL RATE), COMPARED WITH THE PRESENT 18 PER CENT (THAT IS, 12 PER CENT GENERAL RATE PLUS SIX PER CENT URBAN COUNCIL RATE).

HE ALSO PROPOSED THAT THE GENERAL RATE PERCENTAGE FOR TSUEN WAN/KWAI CHUNG (NEW TERRITORIES) BE 11 PER CENT,

HE POINTED OUT THAT SEVEN ADDITIONAL AREAS IN THE NEW TERRITORIES WHICH WERE BROUGHT INTO ASSESSMENT IN APRIL 1976 WOULD BE REQUIRED TO PAY A GENERAL RATE OF SEVEN PER CENT.

THEY ARE YUEN LONG, TAI PO, SHA TIN, TUEN MUN, CLEARWATER BAY ROAD, LUEN WO MARKET/ON LOK TSUEN AND SHEK WU HUI.

+ THE PROPOSED SCHEME OF RELIEF WILL COST SOME $46 MILLION IN THE FIRST YEAR. REVENUE FROM GENERAL RATES IN THE 1977-78 IS, THEREFORE, NOW PUT AT $721 MILLION, THAT IS, AN INCREASE OF 16.8 PER CENT ONLY OVER THE REVISED ESTIMATE FOR 1976-77, COMPARED WITH AN AVERAGE ANNUAL INCREASE OF 18.7 PER CENT OVER THE FOUR YEARS 1973-74 TO 1976-77,+ HE SAID.

+ALL THIS MEANS THAT, FOR THE GENERALITY OF RATEPAYERS, THE AVERAGE INCREASE IN RATES PAYABLE FOR 1977-78 WILL BE ABOUT 15 PER CENT. ON AVERAGE, THE REVISED RATES IN 1977-78 WILL MEAN ONLY A VERY SMALL INCREASE IN THE TOTAL COST OF ACCOMMODATION THE INCREASE WILL BE BETWEEN 1.17 PER CENT AND 2.31 PER CENT OF MARKET RENTALS, INCLUSIVE OF RATES, FOR THE BULK OF POST-WAR DOMESTIC UNITS.+

I

THE FINANCIAL