XN000022-1989-03-01 — Page 24

18

WEDNESDAY, MARCH 1, 1989

ESTIMATED WAS REVENUE ACCRUING TO THE VARIOUS FUNDS BILLION AN INCREASE OF ABOUT 13 PER CENT OVER LAST YEAR LARGELY ACCOUNTED FOR BY REVENUE FROM EXPECTED LAND SALES.

—

COMBINED REVENUE ON

GENERAL

AT $7.8 WHICH WAS

REVENUE ACCOUNT

AN INCREASE OF

AND THE FUNDS 13 PER CENT

WOULD THEREFORE BE ABOUT $81.2 BILLION OVER 1988-89.

то

EXPLAINING THAT TAX REVENUES WOULD CONTINUE KONG'S RECENT ECONOMIC PERFORMANCE, MR JACOBS PREDICTED WOULD REMAIN BUOYANT NEXT YEAR DESPITE THE SLOW DOWN IN ECONOMIC GROWTH WILLCH HE HAD FORECAST.

REFLECT HONG THAT REVENUE THE RATE OF

REVENUE-RAISING MEASURES OUTLINED

* * * * *

YEAR AHEAD, THERE ARE COMPATIBLE WITH THE SECRETARY, THE HON PIERS HIS BUDGET TO THE LEGISLATIVE COUNCIL

DESPITE THE LARGE FORECAST SURPLUS FOR THE IS A NEED TO ENSURE THAT REVENUE PROPOSALS OVERALL ECONOMIC SITUATION, THE FINANCIAL JACOBS, SAID IN PRESENTING TODAY (WEDNESDAY).

INCLUDED A PROPOSALS MR JACOBS SAID HIS

WHICH WOULD YIELD SOME $550 REVENUE-RAISING MEASURES 1989-90, EQUIVALENT TO $620 MILLION IN A FULL YEAR.

NUMBER MILLION

OF

IN

CONCESSIONS

FULL

THE ADDITIONAL REVENUE WAS MORE THAN OFFSET BY TAX ESTIMATED TO COST $1.1 BILLION IN 1989-90, AND $1.7 BILLION IN A YEAR.

THE

REVENUE OVERALL

ON GENERAL "THE EFFECT WILL BE TO REDUCE THE SURPLUS ACCOUNT IN 1989-90 FROM $3.4 BILLION TO $2.8 BILLION AND

HE EXPLAINED. SURPLUS FROM $12.1 BILLION TO $11.5 BILLION,

DUTIABLE COMMODITIES

||

BE

IN

REAL

REMAINED TERMS

BY

MR JACOBS SAID THE PRINCIPLE UNDERLYING HIS PROPOSALS

SHOULD

MAINTAINED RATES THAT SPECIFIC DUTY REGULAR SMALL ADJUSTMENTS.

THE

DUTY

WERE ALL REVISED

RATES ON

YEAR. TO LAST

HYDROCARBON

OILS, LIQUOR

MAINTAIN

THE

AND TOBACCO HE REVENUE YIELD, COMMODITIES BROADLY IN

PROPOSED TO INCREASE THE DUTY RATES ON THESE LINE WITH INFLATION.

AS

INFLATIONARY

PRESSURES,

BE CRITICISED HE SAID HE WAS AWARE THAT THESE INCREASES MIGHT

BUT THE DANGER OF NOT то ADDING MAINTAINING SPECIFIC DUTY RATES WAS SIMPLY MUCH LARGER INCREASES AT LATER DATE.

A

/IMPORTED HYDROCARBON