XN000022-1983-02-23 — Page 34

WEDNESDAY, FEBRUARY 23, 1983

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THE PROCEEDS OF MARK SIX LOTTERIES ARE SUB-DIVIDED AS TO 25 PER CENT DUTY, 15 PER CENT TO THE LOTTERIES FUND AND TO THE JOCKEY CLUB, OF WHICH 5.75 PER CENT GOES TO THE FUND, AND THE BALANCE OF 60 PER CENT TO PRIZE WINNERS.

THE NEW RATES OF BETTING DUTY PROPOSED ARE AS FOLLOWS:

*

*

THE DUTY ON STANDARD BETS WILL BE INCREASED FROM 7.5 PER CENT TO 8.5 PER CENT, BUT WITH A CORRESPONDING REDUCTION IN THE LEVEL OF COMMISSION TO THE JOCKEY CLUB THAT IS TO SAY NO REDUCTION IN THE SIZE OF THE PRIZE MONEY POOL;

THE DUTY ON EXOTIC BETS WILL BE INCREASED FROM 11 PER CENT TO 13.5 PER CENT, WITH A REDUCTION OF ONE PER CENT IN THE LEVEL OF COMMISSION TO THE JOCKEY CLUB AND A REDUCTION OF 1.5 PER CENT FROM THE PUNTERS' SHARE - THIS MEANS, IN EFFECT, THAT THE POOL OF PRIZE MONEY WILL BE DIMINISHED FROM 80.1 PER CENT OF TOTAL BETS PLACED TO 78.6 PER CENT; AND

* THE DUTY ON LOTTERIES WILL BE INCREASED BY TWO PER CENT

FROM 25 PER CENT TO 27 PER CENT, WITH A CORRESPONDING REDUCTION OF TWO PER CENT IN THE LEVEL OF THE JOCKEY CLUB AND LOTTERIES FUND SHARE THE POOL AVAILABLE TO PRIZE WINNERS THUS REMAINS UNCHANGED.

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MR BREMRIDGE SAID THAT OF THE ADDITIONAL $220 MILLION PRODUCED. $26 MILLION WILL COME FROM PUNTERS ON EXOTIC BETS, $6.25 MILLION FROM THE REDUCED CONTRIBUTION TO THE LOTTERIES FUND AND THE REMAINDER BY REDUCING THE JOCKEY CLUB'S SHARE.

HOTEL ACCOMMODATION AND AIRPORT TAXES

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HOTEL ACCOMMODATION TAX, WHICH YIELDS MOST OF THE ANNUAL SUBVENTION TO THE HONG KONG TOURIST ASSOCIATION, WILL BE INCREASED FROM FOUR PER CENT TO FIVE PER CENT ON APRIL 1, 1983, THE FINANCIAL SECRETARY, THE HON JOHN BREMRIDGE SAID IN LEGISLATIVE COUNCIL TODAY.

HE SAID THE TAX INCREASE IS ESTIMATED TO YIELD AN ADDITIONAL $15 MILLION IN 1983-84.

MR BREMRIDGE SAID THE HKTA RECEIVES AN ANNUAL GRANT FROM THE GOVERNMENT CALCULATED ON THE BASIS OF THE YIELD FROM THE TAX PLUS AN ADDITIONAL AMOUNT MADE UP FROM GENERAL REVENUE EQUIVALENT TO A TAX YIELD OF TWO PER CENT.

HE SAID THE PROPOSED TAX INCREASE WILL REDUCE THE CONTRIBUTION FROM GENERAL REVENUE TO THE EQUIVALENT OF A TAX YIELD OF ONE PER CENT, AND FURTHER ELIMINATE THIS CONTRIBUTION OVER FOUR YEARS BY A ONE-QUARTER PERCENTAGE POINT REDUCTION EACH YEAR.

/POR 1983-84,