XN000022-1986-02-26 — Page 28

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WEDNESDAY, FEBRUARY 26, 1986

WITH THE IMPROVED BUDGET POSITION, SIR JOHN SAID HE WAS ABLE TO CONTEMPLATE TAX CONCESSIONS FOR BUSINESS EARLIER THAN HE HAD EXPECTED.

+1 HAVE, THEREFORE, DECIDED TO ADVANCE THE REPEAL OF THESE PARTICULAR AMENDMENTS, WHICH INADVERTENTLY HAVE CREATED ABSURD LEVELS OF DISPUTE, HE SAID.

IT WAS DIFFICULT TO ESTIMATE THE COST OF THIS PROPOSAL WITH ANY ACCURACY BUT HE BELIEVED THE LOSS TO THE REVENUE IN 1986-87 WOULD BE ABOUT $200 MILLION FALLING TO $150 MILLION PER ANNUM THEREAFTER, HE SAID.

THE REDUCTION AFTER 1986-87 TAKES ACCOUNT OF HIS EXPECTATION THAT THE YIELD FROM THIS SOURCE WOULD HAVE BEEN REDUCED FROM ITS INITIAL LEVEL, ESTIMATED AT $350 MILLION IN 1985-86, AS METHODS OF AVOIDANCE WERE INEVITABLY FOUND TO MITIGATE THE EFFECT OF THE LEGISLATION, SIR JOHN SAID.

RISE IN VEHICLE, DRIVING LICENCE FEES PLANNED *****

PROPOSALS TO RAISE VEHICLE AND DRIVING LICENCE FEES BY AROUND FOUR PER CENT WERE ANNOUNCED BY SIR JOHN BREMRIDGE TODAY.

SIR JOHN SAID THAT ALTHOUGH HE HAD INCREASED VEHICLE AND DRIVIN LICENCE FEES IN LAST YEAR'S BUDGET, THIS WAS A SENSITIVE AREA TO WHICH HE FELT THE LITTLE AND OFTEN PRINCIPLE PARTICULARLY APPLIED. THE INCREASES WERE ESTIMATED TO YIELD ABOUT $40 MILLION IN 1986-87.

UNDER THE PROPOSALS, THE FEE FOR A FULL DRIVING LICENCE WILL RISE FROM $160 A YEAR TO $170.

THE FEE FOR A PRIVATE CAR UNDER 1 500 CC WILL RISE FROM $2 500 TO $2 600- THE FEE FOR A PRIVATE CAR BETWEEN 2 501 CC AND 3 500 CC WILL RISE FROM $5 000 TO $5 200, AND THAT FOR A PRIVATE CAR EXCEEDING 4 500 CC WILL RISE FROM $7 400 TO $7 700.

RATES FOR OTHER TYPES AND SIZES OF VEHICLES WILL RISE IN PROPORTION,

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

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