XN000022-1983-02-23 — Page 32

WEDNESDAY, FEBRUARY 23, 1983

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HE PROPOSED THAT THE 1979 FEES SHOULD BE ADJUSTED UPWARDS, IGNORING THE SELECTIVE LOADING INTRODUCED LAST MAY, TO RESTORE THE TAX VALUE AND THAT THE MAY LOADING SHOULD THEN BE ADDED BACK TO OBTAIN THE NEW FEES.

MR BREMRIDGE CALCULATED THAT THE 1979 FEES NEEDED TO BE INCREASED BY ABOUT 80 PER CENT, WHICH MEANT, FOR EXAMPLE, THAT THE LICENCE FEE FOR A SMALL CAR OF UP TO 1 500 CC WOULD BE

TO $2 300.

INCREASED FROM $1 800

+NO LOADING WAS ADDED LAST MAY TO THE FEES FOR GOODS VEHICLES, TAXIS AND PRIVATE LIGHT BUSES. THE IR FEES WILL THUS BE INCREASED BY ROUGHLY 80 PER CENT, HE SAID.

THE ADDITIONAL REVENUE YIELD FROM THE INCREASED FEES FOR 1983-84 WAS ESTIMATED AT $220 MILLION.

URBAN AND NT GENERAL RATES TO INCREASE

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THE FINANCIAL SECRETARY, THE HON JOHN BREMRIDGE TODAY PROPOSED TO INCREASE THE GENERAL RATE PERCENTAGE FOR THE URBAN AREAS FROM 3.5 PER CENT TO 5.5 PER CENT, MAKING A TOTAL INCLUDING THE URBAN COUNCIL RATE OF 13.5 PER CENT.

HE ALSO PROPOSED TO INCREASE THE GENERAL RATE FOR THE NEW TERRITORIES FROM 11 PER CENT TO 13.5 PER CENT TO BRING IT INTO LINE WITH THE TOTAL FOR THE URBAN AREAS WITH EFFECT FROM APRIL 1, 1983.

MR BREMRIDGE NOTED THAT THE MAINTENANCE OF A FAIR BASE ON WHICH TO ASSESS RATES HAS LONG PRESENTED DIFFICULT PROBLEMS,

HE SAID THE BASE ITSELF DOES NOT SET THE RETURN, WHICH DEPENDS ON THE RATE OF TAX OR POUNDAGE.

HE STRESSED, THE GOVERNMENT'S ANNOUNCED INTENTION TO CONDUCT AN EXERCISE TO DETERMINE NEW RATEABLE VALUES FOR 1984-85 IS NOT DESIGNED TO INCREASE THE RETURN FROM RATES, BUT TO ENSURE THAT THE BURDEN OF THE CHARGE IS EQUITABLY SPREAD BETWEEN DIFFERENT CLASSES OF RATEPAYERS.+

THE EXISTING GENERAL RATE PERCENTAGE ARE 3.5 PER CENT IN THE URBAN AREAS AND 11 PER CENT IN THE NEW TERRITORIES. THE URBAN COUNCIL RATE IN THE URBAN AREAS IS EIGHT PER CENT.

THE PRESENT RATEABLE VALUES, TO WHICH THESE PERCENTAGES ARE APPLIED TO DETERMINE THE CHARGE TO RATES, WERE ESTABLISHED AS LONG AGO AS 1976 AND ARE NOW HOPELESSLY OUT OF DATE, MR BREMRIDGE REMARKED.

A REVALUATION EXERCISE IS BEING CARRIED OUT AND NEW VALUES WILL APPLY FROM APRIL 1, 1984.

/+WHEN THOSE