XN000022-1991-03-06 — Page 33

COSMETICS

32

WEDNESDAY, MARCH 6, 1991

THE FINANCIAL SECRETARY PROPOSED TO RAISE THE DUTY ON COSMETICS FROM 25 PER CENT TO 30 PER CENT FOR ADDITIONAL REVENUE YIELD FROM THIS SOURCE.

DUTY ON COSMETICS WAS RE-INTRODUCED IN THE 1985 BUDGET AND THE

AD VALOREM DUTY RATE HAD REMAINED UNCHANGED.

ASSUMING LIMITED CONSUMER RESISTANCE, THE ADDITIONAL YIELD WAS ESTIMATED TO BE $40 MILLION.

AIR PASSENGER DEPARTURE TAX

THE FINANCIAL SECRETARY PROPOSED TO INCREASE THE AIR PASSENGER DEPARTURE TAX FOR AN ADULT FROM $100 TO $150.

HOWEVER,

CHILDREN WHO CURRENTLY PAID $50, WOULD IN FUTURE NOT

PAY THE TAX AT ALL.

THE FINANCIAL SECRETARY SAID THE INCREASE FOR ADULTS WOULD JUST RESTORE THE REAL VALUE OF THE TAX TO THE 1985 LEVEL, WHEN IT WAS $120 AND ZERO-RATING THE TAX FOR CHILDREN WOULD AFFORD SOME RELIEF то PARENTS.

THESE PROPOSALS WOULD COME INTO EFFECT ON APRIL 1 AND ESTIMATED ADDITIONAL REVENUE FROM THIS SOURCE WAS ABOUT $390 MILLION.

VEHICLE FIRST REGISTRATION TAX

THE FINANCIAL SECRETARY PROPOSED TO INCREASE FIRST REGISTRATION TAX ON MOTOR VEHICLES AND THE MEASURES CAME INTO EFFECT THIS AFTERNOON.

THE PROPOSED RATE ON A BASIC PRIVATE CAR WOULD BE INCREASED FROM 80 TO 90 PER CENT; ON A SEMI-LUXURY CAR FROM 90 TO 105 PER CENT; AND ON A LUXURY CAR FROM 100 TO 120 PER CENT.

FOR MOTOR CYCLES, THE RATE WOULD INCREASE FROM 80 TO

CENT.

90 PER

THE FINANCIAL SECRETARY ALSO PROPOSED TO INCREASE THE TAX ON VAN TYPE LIGHT GOODS VEHICLES NOT EXCEEDING 1.9 TONNES IN WEIGHT TO THE SAME RATE AS THAT FOR BASIC PRIVATE CARS, THAT WAS, 90 PER

USED

CENT.

FREQUENTLY CENT.

VANS WEIGHING MORE THAN 1.9 TONNES, WHICH WERE LESS FOR PASSENGER CARRYING, WOULD BE SUBJECT TO TAX AT 50 PER

OTHER GOODS VEHICLES WOULD BE TAXED AT THE RATE OF 35 PER CENT. THUS THE PRESENT SINGLE 25 PER CENT TAX RATE FOR GOODS VEHICLES WOULD BE RESTRUCTURED INTO THREE BANDS OF 90 PER CENT, 50 PER CENT AND 35

PER CENT.

VANS

THE FINANCIAL SECRETARY POINTED OUT THAT FOR SOME YEARS, LIGHT HAD BEEN PURCHASED FOR BOTH PRIVATE PASSENGER AND GOODS USE.

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