XN000022-1988-03-02 — Page 22

WEDNESDAY, MARCH 2. 1988

12

MOVING TOWARDS A MORE ROBUST FISCAL REGIME

REVENUE OVER THE HON PIERS JACOBS, HE PROPOSED WAS MORE THAN

SPEAKING ON THE GOVERNMENT'S STRATEGY FOR PUBLIC THE NEXT FEW YEARS, THE FINANCIAL SECRETARY, SAID THE BALANCED TAXATION PACKAGE THAT JUST A SIMPLE LOWERING OF SOME TAX RATES.

АВ A

MORR

"THE PARTICULAR MEASURES I AM PROPOSING ARE DESIGNED ΤΟ MOVE

WHAT I BELIEVE WILL OUR OVERALL FISCAL REGIME TOWARDS ROBUST AND EQUITABLE SHAPE FOR THE FUTURE HE SAID.

+

THE PACKAGE OF

TAXATION MEASURES

WOULD OVERALL FIVE PER CENT GOVERNMENT'S RECURRENT REVENUE BY ABOUT YIELDS. THE EFFECT WOULD BE TO REDUCE THE AVERAGE OVERALL THE MEDIUM RANGE FORECAST PERIOD TO $2.7 BILLION A YEAR.

MARGIN "THIS WILL STILL LEAVE A COMFORTABLE

TO AND TO PROVIDE A VALUE OF OUR RESERVES IN REAL TERMS UNFORESEEN EVENTS, HE SAID.

प

REDUCE THE OF PRESENT SURPLUS IN

THE MAINTAIN

CUSHION FOR

LAST MR JACOBS SAID WHEN LEGISLATIVE COUNCIL MEMBERS COMMENTED

OF A WIDER AND MORE YEAR ON HIS REMARKS ABOUT THE POTENTIAL VALUE

BE PROPOSED STABLE TAX BASE, HE GAVE AN ASSURANCE THAT NOTHING WOULD

AND TO ALTER THE BALANCE BETWEEN DIRECT

INDIRECT TAXES WITHOUT THE MOST CAREFUL CONSIDERATION OF THE POTENTIAL EFFECTS.

BERN WORKING TO HE ADDED THAT SINCE THEN, THE GOVERNMENT HAD

THE ADVANTAGES IDENTIFY

AND DISADVANTAGES OF DIFFERENT WAYS OF BRINGING ABOUT SUCH A MOVE TOWARDS INDIRECT TAXES.

11

HE SAID.

"IN THIS REGARD, LET ME REMIND MEMBERS OF THE BASIC CRITERIA WHICH I CONSIDER ANY MAJOR NEW INDIRECT TAX SHOULD MEET,

"FIRST, IT SHOULD PRODUCE A STABLE AND WORTHWHILE REVENUE DISTORTION YIELD AT A LOW TAX RATE; SECONDLY, IT SHOULD CAUSE MINIMAL

AND THIRDLY, IT TO THE ECONOMY;

SHOULD BE SIMPLE AND CHEAP TO

ADMINISTER,"

WERE

A

OF

GOVERNMENT'S MR JACOBS NOTED THAT WHILST THE

RESEARCHES TENDED TO CONFIRM HIS BELIEF THAT FAR FROM COMPLETE, THEY HAD MEASURE OF TAX DIVERSIFICATION, TOGETHER WITH SOME RATIONALISATION EXISTING INDIRECT TAXES, WAS A PRACTICAL PROPOSITION.

OF "WHAT WE HAVE DONE SO FAR SUGGESTS THAT A FORM

SALES TAX, BEST MEETS THE CRITERIA THOUGH PROBABLY NOT AT THE RETAIL LEVEL.

I

HAVE DESCRIBED.

MANY

AM

AND "BUT THIS IS A COMPLEX AREA

FACTORS REMAIN TO BK BE CONSIDERED. THERE IS, THEREFORE, MUCH MORE TO

DONE BEFORE I ABLE TO PRESENT ANY PROPOSALS FOR PUBLIC DEBATES, HE SAID.

++

/ON THE