XN000022-1981-02-25 — Page 8

WEDNESDAY, FEBRUARY 25, 1981

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+HOWEVER, IF THERE WERE TO BE A SHARP DOWNTURN IN THE ECONOMY, THE EFFECT ON PROFITABILITY OF BUSINESS COULD LEAD TO THE HOLD-OVER PROVISIONS OF THE PROVISIONAL TAX SYSTEM BEING INVOKED ON A LARGER SCALE THAN THIS AND ACTUAL COLLECTIONS IN 1981/82 BEING DOWN ON THE ESTIMATE.+

THE FINANCIAL SECRETARY ALSO EXPECTED THAT REVENUES FROM SALARIES TAX WOULD GO UP BY 32 PER CENT TO $1 950 MILLION AS PROVISIONAL TAX PAID IN 1980/81 WOULD PROBABLY BE MUCH LESS THAN THE FINAL TAX COLLECTIBLE IN 1981/82.

+THIS IS BECAUSE MONEY INCOMES IN 1980/81 WERE ON A FAST RISING TREND AND, THEREFORE, THERE WILL BE SUBSTANTIAL BALANCES TO BE COLLECTED IN 1981/82, HE SAID.

+THE ESTIMATE ENVISAGES THAT THE NUMBER OF SALARIES TAXPAYERS IN THE NET WILL BE AROUND 395 000 IN 1981/82, AS OPPOSED TO 340 000 IN 1980/81,+ SIR PHILIP ADDED.

HE ALSO FORECAST THAT REVENUE FROM PROPERTY TAX WOULD GO UP BY 100 PER CENT TO $640 MILLION. THIS REFLECTS THE HIGHER ASSESSABLE VALUES LIKELY TO BE ESTABLISHED BY THE REASSESSMENT EXERCISE NOW IN HAND.

+THE APPLICATION OF THESE HIGHER ASSESSABLE VALUES WILL GO SOME WAY TOWARDS CORRECTING THE PRESENT INEQUITY OF TREATMENT BETWEEN NON-CORPORATE AND CORPORATE PROPERTY OWNERS (INCLUDING, IN EFFECT, NON-CORPORATE BUSINESS PROPERTIES), THE LATTERS' ACTUAL INCOME FROM PROPERTY BEING BROUGHT INTO PROFITS TAX CHARGE, HE SAID.

AS REGARDS INDIRECT TAXES, THE FINANCIAL SECRETARY ESTIMATED THAT REVENUE WOULD BE ABOUT $4 977 MILLION. THIS INCLUDES $1 300 MILLION ON STAMP DUTIES, $1 061 MILLION ON RATES, $1 020 MILLION FROM TAXES ON BETS AND SWEEPS AND $943 MILLION FROM DUTIABLE COMMODITIES.

CAPITAL REVENUE FOR THE COMING FISCAL YEAR WILL BE $11 932 MILLION, WHICH IS AN INCREASE OF $1 306 MILLION, OR 12.3 PER CENT, ON THE REVISED ESTIMATE FOR 1980/81. LAND TRANSACTIONS ARE EXPECTED TO BRING IN $11 498 MILLION (AS OPPOSED TO THE REVISED ESTIMATE FOR 1980/81 OF $10 077 MILLION), TAXI CONCESSIONS $86 MILLION AND ESTATE DUTY $250 MILLION.

+ IN THE FIVE POST-RECESSION YEARS, LAND SALES BY PUBLIC AUCTION AND TENDER HAVE BEEN 38 ACRES, 34 ACRES, 58 ACRES, 76 ACRES AND 156 ACRES RESPECTIVELY. THE FACT THAT, IN 1981/82, A FURTHER SUBSTANTIAL AREA WILL BE SOLD, NAMELY 196 ACRES, IS A REFLECTION OF THE BUILD UP OF EXPENDITURE ON DEVELOPMENT WORKS RECENTLY, SIR PHILIP SAID.

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