XN000022-1987-02-25 — Page 35

WEDNESDAY, FEBRUARY 25, 1987

1907

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+SERVICES SHOULD BE PAID BY THOSE WHO USE THEM+

*****

THE FINANCIAL SECRETARY, THE HON PIERS JACOBS, TODAY (WEDNESDAY) PROPOSED TO INCREASE BUSINESS REGISTRATION FEES, VEHICLE AND DRIVING LICENCE FEES, AND CERTAIN VISA AND TRAVEL DOCUMENT FEES.

MR JACOBS POINTED OUT THAT THE GOVERNMENT'S POLICY WAS THAT SERVICES SHOULD GENERALLY BE PAID FOR BY THOSE WHO USE THEM.

+IT IS OF AREAT IMPORTANCE IN OUR LOW TAX ECONOMY THAT WE DO ALL WE CAN TO OBSERVÉ THE PRINCIPLE THAT SERVICES SHOULD NOT IN GENERAL BE SUBSIDISED.

+IN THIS REGARD, CONTROLLING OFFICERS ARE CONSTANTLY ENCOURAGED TO TAKE THE INITIATIVE IN PROPOSING NEW FEES AND CHARGES TO ENSURE THAT THOSE SERVICES THAT ARE NOT A FAIR CHARGE ON THE GENERAL TAXPAYER ARE PAID FOR BY THOSE WHO BENEFIT FROM THEM.+

MR JACOBS NOTED THAT THESE SPECIFIC INCREASES WOULD BE IN ADDITION TO THOSE DEPARTMENTAL FEES AND CHARGES COMING UP FOR THEIR NORMAL REGULAR REVIEW IN 1987.

+THE INCREASES WILL YIELD $200 MILLION IN 1987-88 AND $240 MILLION IN A FULL YEAR, HE ADDED.

THE PROPOSED INCREASE IN BUSINESS REGISTRATION FEE WAS 10 PER CENT, I.E. THE ANNUAL CHARGE OF $500 WOULD GO UP TO $550. STARTING FROM APRIL THIS YEAR,

+THE FEE WILL APPLY TO ALL REGISTERED BUSINESSES, BUT SMALL BUSINESSES WHOSE MONTHLY TURNOVER DOES NOT EXCEED CERTAIN PRESCRIBED LIMITS WILL CONTINUE TO BE GRANTED EXEMPTION.

*THE ADDITIONAL YIELD WILL BE $20 MILLION IN 1987-88, AND THE LEVY FOR THE PROTECTION OF WAGES ON INSOLVENCY FUND, CURRENTLY AT A RATE OF $100, IS SEPARATE AND IS NOT AFFECTED BY THIS PROPOSAL.!

AS TO VEHICLE AND DRIVING LICENCE FEES, MR JACOBS PROPOSED AN

THE INCREASE OF AROUND 5 PER CENT, WITH IMMEDIATE EFFECT. ADDITIONAL REVENUE ACCRUING FROM THESE INCREASES WOULD BE $45 MILLION.

CERTAIN VISA AND TRAVEL DOCUMENT FEES WOULD ALSO GO UP BY AN AVERAGE OF 12 PER CENT, WITH IMMEDIATE EFFECT.

HE NOTED THAT MOST OF THESE FEES WERE LAST INCREASED IN 1984, AND THE ADDITIONAL REVENUE WOULD BE AROUND $20 MILLION.

A NUMBER OF OTHER FEES AND CHARGES, INCLUDING THOSE IN RELATION TO SERVICES PROVIDED BY THE WATER SUPPLIES DEPARTMENT, THE MARINE DEPARTMENT AND THE REGISTRAR GENERAL'S DEPARTMENT, WERE SCHEDULED FOR THEIR NORMAL REGULAR REVIEWS THIS YEAR.

MR JACOBS SAID HE EXPECTED FROM THESE SOURCES ADDITIONAL REVENUE OF ABOUT $115 MILLION IN 1987-88, GIVING RISE TO $155 MILLION IN A FULL YEAR.

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