XN000022-1983-02-23 — Page 35

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WEDNESDAY, FEBRUARY 23, 1983

FOR 1983-824, HE SAID, THE ASSOCIATION'S SUBVENTION WILL BE EQUIVALENT TO THE TAX AT FIVE AND THREE QUARTERS PER CENT, THE TAX

ITSELF PRODUCING FIVE PER CENT AND GENERAL REVENUE CONTRIBUTING THREE-QUARTERS PER CENT.

THE TOTAL SUBVENTION SHOULD STILL PROVIDE THE ASSOCIATION WITH AN INCREASE IN MONEY TERMS IN 1983-84 IN LINE WITH THE GUIDELINES HE ADOPTED FOR PUBLIC SECTOR EXPENDITURE, MR BREMRIDGE SAID.

MR BREMRIDGE ALSO PROPOSED A SPECIFIC TAX ON DEPARTING PASSENGERS AT THE AIRPORT AT $100 FOR EACH PASSENGER, WITH A CONCESSIONARY RATE FOR CHILDREN. THE EXISTING PASSENGER SERVICE CHARGE AT $20 FOR EACH ADULT PASSENGER WILL BE ABOLISHED.

HOWEVER, HE ADDED THAT NEW LEGISLATION WOULD BE REQUIRED AND ADMINISTRATIVE ARRANGEMENTS WITH THE AIRLINES WOULD HAVE TO BE MADE FOR THE COLLECTION OF THE TAX, WHICH IS EXPECTED TO YIELD AN ADDITIONAL REVENUE OF $230 MILLION FOR 1983-84.

BANK AND BUSINESS REGISTRATION FEES INCREASED

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THE FINANCIAL SECRETARY, THE HON JOHN BREMRIDGE PROPOSED TO INCREASE BUSINESS REGISTRATION FEES, COMPANY REGISTRATION FEES, BANK LICENCES FEES AND BUOY FEES TO YIELD A TOTAL OF $195 MILLION IN REVENUE IN 1983/84.

PRESENTING HIS BUDGET IN THE LEGISLATIVE COUNCIL TODAY (WEDNESDAY) HE SAID THAT THE PRESENT ANNUAL BUSINESS REGISTRATION FEE OF $175 PAYABLE BY PERSONS CARRYING ON BUSINESS AND BY COMPANIES REGISTERED UNDER THE COMPANIES ORDINANCE WAS FIXED IN APRIL 1979.

+HAVING REGARD TO THE FACT THAT IT IS A TAX LOADED CHARGE, THERE IS CLEARLY A CASE FOR AN INCREASE SIMPLY TO TAKE ACCOUNT OF INCREASED COSTS, HE SAID.

MR BREMRIDGE ALSO POINTED OUT THAT MANY PEOPLE WHO CARRY ON BUSINESS HERE MAKE LITTLE OR NO OTHER CONTRIBUTION TO THE EXCHEQUER.

HE BELIEVED THAT THERE IS A GOOD CASE FOR A SUBSTANTIAL PRECENTAGE INCREASE IN BUSINESS REGISTRATION FEES. BUT BY ANY STANDARDS THE CHARGE IS MODEST, HE ADDED.

HE PROPOSED TO DOUBLE THE RATE OF THE ANNUAL BUSINESS REGISTRATION FEE FROM ITS PRESENT LEVEL OF $175 TO 3350 PER ANNUM.

THE INCREASED FEE WILL BE EFFECTIVE FROM APRIL 1, 1983 AND IS ESTIMATED TO PRODUCE AN ADDITIONAL $60 MILLION ANNUALLY.

/IR BRARIJGE