XN000022-1979-04-12 — Page 16

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THURSDAY, APRIL 12, 1979

IN POINTING OUT THAT UNDER THE G.A.T.T. THIS PREFERENCE MARGIN COULD NOT BE INCREASED, MR. HADDON-CAVE ADDED, I DO NOT THINK, IN ANY CASE, THAT THE ABOLITION OF THE DUTY AT A COST TO THE REVENUE OF $11.5 MILLION WOULD BE JUSTIFIED.+

ON THE HON. JOHN BREMRIDGE'S SUGGESTION TO CONSIDER SOME FURTHER DEGREE OF SUMPTUARY TAXATION IN THE YEARS AHEAD, MR. HADDON-CAVE SAID: +HIS SUGGESTIONS IN THIS RESPECT CONCENTRATED ON NEW OR INCREASED RATES OF DUTY OR TAX ON A VAR IETY OF LUXURY ITEMS RANGING FROM PRIVATE SWIMMING POOLS TO PERFUMES (THE ALCOHOL CONTENT OF WHICH IS ALREADY DUTIABLE, INCIDENTALLY).

+WHILST, AS ALWAYS HE HAS GIVEN ME FOOD FOR THOUGHT,

I AM SURE HE WOULD AGREE THAT WE SHOULD BE CAREFUL NOT TO STEER OURSELVES IN THE DIRECTION OF SELF-RIGHTEOUSLY PENAL ISING THE AFFLUENT WHEN, AS HE ADMITS, 'THE TOTAL RETURN MAY BE RELATIVELY LOW' AND, I WOULD ADD, THE ADMINISTRATIVE COSTS ARE BOUND TO BE RELATIVELY HIGH.+

MOTOR VEHICLE TAXATION

MR. BREMRIDGE ALSO SUGGESTED THAT POSSIBLE ALTERNATIVE TAXES ON USAGE, AND NOT POSSESSION OF VEHICLES BE CONSIDERED.

TO THIS, THE FINANCIAL SECRETARY SAID, I HAVE NOTED WHAT HE HAD TO SAY BUT WOULD REMIND HIM THAT MY ́PROPOSALS ON MOTOR VEHICLE TAXATION HAD NOTHING TO DO WITH FUTURE TRANSPORT POLICY | PUT THEM FORWARD ON FISCAL GROUNDS ONLY.+

AS TO MR. LOBO'S FAILURE TO UNDERSTAND WHY PRIVATE BUSES OR COACHES HAVE BEEN SPARED, MR. HADDON-CAVE SAID REGARDING FIRST REGISTRATION TAX, THERE ARE AT PRESENT 1,466 VEHICLES REGISTERED AS NON-ENFRANCHISED PUBLIC BUSES GENERALLY AVAILABLE FOR HIRE AND 234 VEHICLES REGISTERED AS PRIVATE BUSES USED GENERALLY TO SERVE SCHOOLS, FACTORIES, TOURISTS AND SOME RESIDENTIAL PREMISES.

+HOWEVER, FOR MY PART, I FAIL TO UNDERSTAND MR. LOBO'S QUESTION: +ARE WE CREATING ANOTHER CLASS OF BUSINESS AND PRIVATE VEHICLES' ?+

THESE BUSES, MR. HADDON-CAVE EXPLAINED, UNLIKE ENFRANCHISED PUBLIC BUSES WHICH ARE NOT SUBJECT TO FIRST REGISTRATION TAX. WERE FIRST BROUGHT WITHIN THE SCOPE OF THE MOTOR VEHICLES (FIRST REGISTRATION TAX) ORDINANCE, TOGETHER WITH GOODS VEHICLES AND TAXIS, AT AN AD VALOREM RATE OR 15 PER CENT WHEN COMMONWEALTH PREFERENCE ON MOTOR VEHICLES WAS ABOLISHED IN 1975.

+AS I IMPLIED IN THE BUDGET SPEECH, I SEE NO NEED AT THIS TIME TO PICK OUT NON-ENFRANCHISED BUSES FOR SPECIAL TREATMENT.+

MR. HADDON-CAVE