XN000022-1979-02-28 — Page 8

WEDNESDAY, FEBRUARY 28, 1979

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1979-80 REVENUE COLLECTIONS TO TOTAL $13,882 MILLION

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TOTAL REVENUE COLLECTIONS, EXCLUDING THOSE FROM REVENUE PROPOSALS, FOR THE COMING FINANCIAL YEAR WILL BE $13,882 MILLION, REPRESENTING AN INCREASE OF $1,508 MILLION, OR OVER 12 PER CENT, OVER THE REVISED ESTIMATE OF $12,374 MILL ION FOR 1978-79.

THE FINANCIAL SECRETARY, THE HON. PHIL IP HADDON-CAVE SAID TODAY (WEDNESDAY) THAT OF THE TOTAL COLLECTIONS, $11,470 MILLION WOULD BE RECURRENT REVENUE, AN INCREASE OF $1,538 MILLION, OR 15.5 PER CENT, OVER THE REVISED ESTIMATE OF $9,932 MILLION FOR 1978-79.

HE SAID EARNINGS AND PROFIT TAXES ACCOUNTED FOR $5,070 MILLION OR 44 PER CENT OF RECURRENT EXPENDITURE, REPRESENTING AN INCREASE OF $936 MILLION, OR NEARLY 23 PER CENT, OVER THE REVISED ESTIMATE FOR 1978-79.

+THE ESTIMATE MAKES DUE ALLOWANCE FOR THE EFFECT OF BRINGING THE TAXATION TREATMENT OF PROFITS OF BANKS AND SIMILAR INSTITUTIONS INTO LINE WITH THE TREATMENT OF ALL OTHER PROFITS GENERATED BY BUSINESSES LOCATED IN, AND OPERATING IN, HONG KONG, THE RE INTRODUCTION OF DEPENDENT PARENT RELIEF AND THE EXEMPTION OF CLUBS FROM THE PAYMENT OF PROPERTY TAX, THE FINANCIAL SECRETARY SAID.

ON RATES, HE SAID THE SCHEME OF RELIEF INTRODUCED A FEW YEARS AGO WOULD CEASE AND THAT FOR ALL PREMISES OTHER THAN THOSE PRE-WAR RENT-CONTROLLED PREMISES. THE RATES PAYABLE FROM APRIL 1 WOULD BE THE FULL RATE BASED ON THE RATEABLE VALUE OF THE PREMISES.

+THE CESSATION OF THE SCHEME OF RELIEF WILL RESTORE SOME $9 MILLION TO THE YIELD FROM RATES AND AFTER ALLOWING FOR INCREASED PRECENTAGE CHARGES IN RESPECT OF THE PHASING-IN OF RATES FOR NEW AREAS IN THE NEW TERRITORIES, ESTIMATE THAT RATES REVENUE SHOULD INCREASE FROM $807 MILLION IN 1978-79 (REVISED ESTIMATE) TO $882 MILLION IN 1979-80, OR BY NEARLY 9.3 PER CENT,+ THE FINANCIAL SECRETARY SAID.

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+ IT IS FOR THIS REASON THAT, OTHER THAN IN REGARD TO THE PHASING IN PROGRAMME, I SHALL NOT BE PROPOSING ANY CHANGE IN THE GENERAL RATE WHICH WAS REDUCED TO 7-1/2 PER CENT WITH EFFECT FROM APRIL 1, 1977, + HE ADDED.

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