XN000022-1982-02-24 — Page 5

WEDNESDAY, FEBRUARY 24, 1982

TAX INCENTIVES TO BOOST INVESTMENT

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THE FINANCIAL SECRETARY, THE HON JOHN BREMRIDGE HAS PROPOSED TWO TAX CONCESSIONS WHICH OFFER INCENTIVES FOR INVESTMENT TO THE BUSINESS SECTOR AND IN PARTICULAR TO MANUFACTURERS.

IN HIS BUDGET, THE FINANCIAL SECRETARY PROPOSED THAT THE INITIAL ALLOWANCE FOR EXPENDITURE INCURRED ON THE PROVISION OF QUALIFYING PLANT AND EQUIPMENT SHOULD BE INCREASED FROM 35 PER CENT TO 55 PER CENT.

HE ALSO PROPOSED THAT THE GRANT OF INDUSTRIAL BUILDINGS ALLOWANCES, WHICH ARE AT PRESENT COMPUTED BY REFERENCE TO THE COST OF CONSTRUCTION ONLY, SHOULD BE COMPUTED BY REFERENCE TO THE NET PRICE PAID BY THE PURCHASER.

IN PUTTING FORWARD HIS PROPOSALS, MR BREMRIDGE SAID HE WAS WELL AWARE OF THE DIFFICULTIES CURRENTLY BEING EXPERIENCED FOR EXAMPLE BY MANY IN THE SPINNING, WEAVING, DYEING AND FINISHING SECTORS.

HE SAID HE BELIEVED THAT IF OUR INDUSTRY IS TO REMAIN FLEXIBLE AND COMPETITIVE, MANUFACTURERS SHOULD BE FURTHER ENCOURAGED TO EXPAND THEIR INVESTMENT IN NEW CAPITAL EQUIPMENT.

IT IS ALSO DESIRABLE, HE SAID THAT NEW PLANT AND EQUIPMENT AND PARTICULARLY THE WORKERS WHO OPERATE THE MACHINES, SHOULD BE ACCOMMODATED IN MODERN AND EFFICIENT PREMISES.

MR BREMRIDGE SAID THE NEW INITIAL ALLOWANCE FOR EXPENDITURE ON PLANT AND EQUIPMENT WILL APPLY TO BOTH FINAL PROFITS TAX ASSESSMENTS FOR 1981-82 AND PROVISIONAL PROFITS TAX FOR 1982-83.

THE COST TO THE REVENUE OF THIS INCREASED ALLOWANCE WILL BE $354 MILLION IN 1982-83 AND $180 MILLION IN A +FULL+ YEAR.

THE NEW INDUSTRIAL BUILDINGS ALLOWANCES, ALSO APPLICABLE TO BOTH FINAL PROF ITS TAX ASSESSMENTS FOR 1981-82 AND PROVISIONAL PROFIT TAX FOR 1982-83, WILL MEAN THE COST TO THE REVENUE OF $66 MILLION IN 1982-83 AND $34 MILLION IN A +FULL+ YEAR.

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