XN000022-1979-02-28 — Page 16

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PROPOSED TAX INCREASES TO AFFECT MOTORISTS, BUSINESSMEN

AND SHIPPING

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A NUMBER OF TAX INCREASES AFFECTING MOTORISTS, BUSINESSMEN AND SHIPPING, WERE PROPOSED BY THE FINANCIAL SECRETARY, THE HON. PHILIP HADDON-CAVE, TODAY (WEDNESDAY).

THE INCREASES APPLY TO FIRST REGISTRATION TAX ON MOTOR VEHICLES AND MOTOR CYCLES, VEHICLE LICENCE FEES, BUSINESS REGISTRATION FEES, AND BUOY AND ANCHORAGE FEES.

IN OUTLINING THE REVISED RATES IN HIS BUDGET SPEECH,

MR. HADDON-CAVE ALSO INDICATED THAT CERTAIN FEES AND CHARGES MAY BE REVISED UPWARDS LATER ON.

AS FROM MIDNIGHT TONIGHT (WEDNESDAY), FIRST REGISTRATION TAX ON MOTOR VEHICLES WILL RISE FROM 30 PER CENT TO 35 PER CENT FOR BASIC CARS FOR SEMI-LUXURY CARS FROM 35 PER CENT TO 40 PER CENT AND FOR LUXURY CARS FROM 40 PER CENT TO 45 PER CENT.

IN LINE WITH THE NEW RATE OF TAX FOR THE BASIC CAR, THE RATE FOR MOTOR CYCLES AND MOTOR TRICYCLES WILL ALSO BE INCREASED FROM 30 PER CENT TO 35 PER CENT.

ANNOUNCING THE NEW RATES, MR. HADDON-CAVE NOTED THAT THE VALUE OF IMPORTS OF CARS INCREASED BY 41 PER CENT IN 1977 OVER 1976, AND BY 76 PER CENT IN 1978 OVER 1977. +CLEARLY, THE EXISTING RATES ARE NO DISCOURAGEMENT TO ASPIRING CAR OWNERS, HE SAID, ADDING THAT HE DID NOT THINK THE PROPOSED RATES WOULD BE SIGNIFICANTLY MORE DISCOURAGING.

REVENUE FROM FIRST REGISTRATION TAX, HE SAID, HAD INCREASED STEADILY FROM $102 MILLION IN 1976-77 TO $148 MILLION IN 1977-78 TO $254 MILLION IN 1978-79. AND THE ESTIMATE FOR 1979-80 WAS OVER $300 MILLION. +WE ARE CLEARLY NOWHERE NEAR THE POINT OF DIMINISHING RETURNS, AND I CONSIDER THAT THIS IS ONE SOURCE WHICH COULD CONTRIBUTE MORE TO THE REVENUE.+

THE NEW RATES, HE ADDED, ARE EXPECTED TO YIELD $35 MILLION IN 1979-80.

MOTOR VEHICLE LICENCES WILL ALSO COST MORE AS FROM MIDNIGHT TONIGHT.

THE NEW RATES FOR PRIVATE CARS ARE: UP TO 1,000 C.C. $400, UP TO 1,500 c.c. $600, UP TO 2,500 c.c. $900, UP TO 3,500 C.C. $1,200, UP TO 4,500 Č.C. $1,500, CARS OVER 4,500 C.C. $1,800.

FOR MOTOR CYCLES, THE RATES GO UP FROM $175 TO $200.

IN THE CASE OF GOODS VEHICLES, THE NEW FEE FOR A VEHICLE UP TO 20 CWT WILL BE $400, FOR THOSE UP TO 45 CWT $800, FOR THOSE UP TO 75 CWT $1,200, AND FOR THOSE OVER 75 CWT $1,600.

THE MOTOR VEHICLE LICENCE FEE FOR TAX IS AND FOR A PRIVATE LIGHT BUS WERE ALSO RAISED TO $900.

THE EXPECTED ADDITIONAL REVENUE FROM THESE INCREASES AND ADJUSTMENTS WOULD YIELD AN ESTIMATED $41 MILLION IN 1979-80.

MR. HADDON-CAVE