XN000022-1986-02-26 — Page 25

10

WEDNESDAY, FEBRUARY 26, 1986

HE SAID THE RETAIL PRICE OF LOCALLY-PRODUCED CIGARETTES SHOULD INCREASE MUCH LESS THAN THE DUTY RATE INCREASE OF 11.8 PER CENT.

SIR JOHN SAID THAT CONSUMPTION OF MANUFACTURED TOBACCO (OTHER VARIETIES) HAD INCREASED MARKEDLY IN RECENT YEARS BECAUSE OF THE INCREASED USE OF PUFF OR CUT TOBACCO BY LOCAL CIGARETTE MANUFACTURERS.

EVEN AFTER AN INCREASE IN THE DUTY RATE OF 21 PER CENT IN THE 1985 BUDGET, CONSUMPTION IN THE FIRST SEVEN MONTHS OF THIS FINANCIAL YEAR HAD GROWN BY AN ENORMOUS 192 PER CENT. IN RECOGNITION OF THIS RISE, AND TO BE CONSISTENT WITH THE DUTY RATE INCREASE ON IMPORTED RAW TOBACCO, HE PROPOSED THE $20 A KILOGRAM RISE IN THE DUTY RATE ON MANUFACTURED TOBACCO (OTHER VARIETIES).

SIR JOHN SAID TOTAL ADDITIONAL REVENUE FROM THE TWO DUTY RATE INCREASES WAS ESTIMATED AT $55 MILLION FOR 1986-87 -- $40 MILLION FROM IMPORTED RAW TOBACCO AND $15 MILLION FROM MANUFACTURED TOBACCO (OTHER VARIETIES). IN BOTH CASES HE HAD ALLOWED FOR CONSUMER RESISTANCE.

THESE PROPOSALS WERE ALSO THE SUBJECT OF REVENUE PROTECTION ORDERS SIGNED BY THE GOVERNOR EARLIER IN THE DAY.

BANK, DTC LICENCE FEE RISE PROPOSED *****

PROPOSALS FOR AN INCREASE OF 20 PER CENT IN BANK LICENCE FEES AND 13 PER CENT IN DEPOSIT-TAKING COMPANY LICENCE FEES WERE MADE BY SIR JOHN BREMRIDGE TODAY.

THE TWO LICENCE FEES WERE LAST INCREASED IN 1983 AND 1984 RESPECTIVELY. SIR JOHN PROPOSED THAT THE ANNUAL LICENCE FEE FOR A BANK BE INCREASED FROM $300 000 TO $360 000. THE LICENCE FEE FOR A DEPOSIT-TAKING COMPANY WOULD GO UP FROM $150 000 TO $170 000.

HE ALSO PROPOSED SIMILAR INCREASES IN RELATED FEES. FOR BANKS, THESE INCLUDED THE FEES REQUIRED FOR ESTABLISHING A LOCAL BRANCH AND AN OVERSEAS BRANCH. THE FORMER WOULD RISE FROM $15 000 TO $17 000, AND THE LATTER FROM $30 000 TO $34 000.

FOR DEPOSIT-TAKING COMPANIES, THE FEE FOR ESTABLISHING A LOCAL BRANCH WOULD RISE FROM $7 500 TO $8 500, AND THE REGISTRATION FEE WOULD INCREASE FROM $45 000 TO $50 000,

OVERALL, THE INCREASES WOULD YIELD AROUND $15 MILLION IN

1986-87.

HE ADDED