XN000022-1986-02-26 — Page 23

WEDNESDAY, FEBRUARY 26, 1730

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HYDROCARBON OILS: 4.5 PER CENT DUTY RISE SOUGHT

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THE FINANCIAL SECRETARY, THE HON SIR JOHN BREMRIDGE, TODAY PROPOSED AN OVERALL INCREASE OF 4.5 PER CENT IN DUTY RATES FUN ALL HYDROCARBON OILS - MOTOR SPIRIT FROM $2.20 TO $2.30 PER LITE AND DIESEL OIL FROM $1.10 TO $1.15 PER LITRE.

SIR JOHN SAID IN HIS BUDGET SPEECH THAT THE 1985 INCREASE

OF 10 PER CENT WAS SIGNIFICANTLY LESS THAN THAT REQUIRED TO MAINTAIN THE REVENUE YIELD IN REAL TERMS IN THE LIGHT OF INFLATION SINCE 1983.

NEVERTHELESS, HE PROPOSED FOR THE 1986 BUDGET AN OVERALL INCREASE FOR ALL HYDROCARBON OILS OF 4.5 PER CENT ONLY.

SIR JOHN SAID, THIS WILL MAINTAIN THE 1985 YIELD IN REAL TERMS, ADDING THAT FALLING OIL PRICES WERE LIKELY TO EASE THE ACTUAL BURDEN ON CONSUMERS.

ASSUMING NO CONSUMER RESISTANCE, HE ESTIMATED THAT THE ADDITIONAL YIELD WOULD BE $50 MILLION IN 1986-87.

HE SAID CONSUMPTION OF MOTOR SPIRIT HAD DECLINED 21 PER CE.T SINCE 1982-83 WHILE REVENUE OVER THE SAME PERIOD HAD INCREASED € PER CENT DUE TO DUTY INCREASES.

+A DECLINE IN YIELD IS PRESENTLY ESTIMATED FOR 1986-87,+ HE SAID.

CONSUMPTION OF DIESEL OIL HAD GROWN BY 18 PER CENT AND REVENUE BY 320 PER CENT SINCE 1982-83, REFLECTING THE GROWTH IN NUMBERS OF DIESEL ENGINED ROAD VEHICLES, HE ADDED.

SIR JOHN SAID THE CURRENT REFUND ON DIESEL OIL TO THE FRANCHISED BUS COMPANIES WOULD REMAIN AT 65 CENTS A LITRE.

*THE COST TO THESE COMPANIES SHOULD BE OF THE ORDER OF $6 MILLION, + HE ADDED.

THE EFFECT ON BUS FARES WOULD ON AVERAGE BE LESS THAN ONE HALF OF ONE CENT, SIR JOHN SAID.

HIS PROPOSALS FOR DUTIABLE COMMODITIES AND TRANSPORT LICENCE FEES HAD BEEN THE SUBJECT EARLIER, IN THE MORNING, OF PUBLIC REVENUE PROTECTION ORDERS SIGNED BY THE GOVERNOR, SIR JOHN SAID.

THEY INCLUDED UNMANUFACTURED AND MANUFACT ED TOBACCO AND HYDROCARBON OILS.

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