XN000022-1983-04-14 — Page 12

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THURSDAY, APRIL 14, 1983

FISCAL NEEDS BEHIND OILS TAXES STRESSED

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THE FINANCIAL SECRETARY, THE HON JOHN BREMRIDGE TODAY STRESSED THAT THE INCREASED TAXES ON HYDROCARBON OILS AND VEHICLE LICENCES WERE MOTIVATED PURELY AND SIMPLY BY FISCAL NEEDS.

IN HIS CONCLUDING SPEECH OF THE BUDGET DEBATE IN THE LEGISLATIVE COUNCIL, MR BREMRIDGE SAID THE ADDITIONAL YIELD FROM THIS PACKAGE OF TAXES WOULD BE NO LESS THAN ABOUT $840 MILLION NEXT FINANCIAL YEAR.

HE SAID HE SYMPATHISED WITH THE VIEWS OF SOME UNOFFICIAL MEMBERS WHO HAD SPOKEN +DISPARAGINGLY ABOUT THIS WIDELY UNPOPULAR PROPOSAL+, BUT HE ADDED: +FROM WHAT OTHER SOURCES CAN I SECURE $840 MILLION?+

+HONG KONG IS GETTING RICHER AND I FULLY SUPPORT ASPIRATIONS TO CAR OWNERSHIP. MEMBERS MAY, HOWEVER, AGREE THAT ON MOST DEFINITIONS THESE INCREASED TAXES WILL NOT LIE HEAVILY ON THE POOR,+ HE SAID.

+AFTER ALL 80 PER CENT OF THE POPULATION PERFORCE USE PUBLIC TRANSPORT AT ALL TIMES.+

IN A FEW YEARS' TIME, MR BREMRIDGE ADDED, IT MAY ANYWAY BE POSSIBLE THROUGH ELECTRONIC ROAD PRICING TO ADVANCE THE POLICY OF TAXING VEHICLE USAGE RATHER THAN OWNERSHIP.

HE SAID HE WAS WELL AWARE OF THE DEEP FEELING OF UNFAIRNESS BORNE BY A CAR OWNER WHO USED IT SPARINGLY AT WEEKENDS FOR FAMILY OUTINGS.

+AT PRESENT THERE IS NO WAY ROUND THIS PROBLEM, THOUGH I MUST OBSERVE THAT BY EUROPEAN STANDARDS THE INCREASED PETROL PRICE IN HONG KONG IS NOT UNUSUAL.+

EARLIER MR BREMRIDGE SAID HE HAD EXCLUDED FRANCHISED BUSES FROM THE INCREASED OIL TAX, BUT THE SAME BENEFIT COULD NOT BE EXTENDED TO PLB'S, TAXIS AND OTHERS +FOR THE PRAGMATIC REASON THAT IT WOULD BE IMPOSSIBLE TO SEGREGATE THE NECESSARY FUEL PUMPS+,

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