XN000022-1991-04-17 — Page 17

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WEDNESDAY, APRIL 17, 1991

"IF PEOPLE DO NOT WISH TO SPEND THAT KIND OF MONEY THEN THE REMEDY IS IN THEIR OWN HANDS," HE SAID.

TURNING TO VEHICLE TAXES, THE FINANCIAL SECRETARY NOTED THAT HIS PACKAGE OF REVENUE MEASURES INVOLVING VEHICLE FEES AND TAXES HAD CAUSED SOME ALARM AMONG DISABLED DRIVERS.

HOWEVER, SIR PIERS ASSURED THEM THAT THE SECRETARY FOR HEALTH AND WELFARE HAD LEGISLATIVE PROPOSALS IN HAND TO GRANT THEM RELIEF FROM THE VEHICLE OWNERSHIP TRANSFER FEE AND DUTIES ON PETROL AND DIESEL.

HE POINTED OUT THAT THIS WAS IN ADDITION TO THE WIDE RANGE OF CONCESSIONS ALREADY AVAILABLE TO THE DISABLED UNDER THE ROAD TRAFFIC ORDINANCE AND MOTOR VEHICLE (FIRST REGISTRATION TAX) ORDINANCE.

HE SAID AFTER THE INCREASE IN FIRST REGISTRATION TAXES, A NEW CAR WHICH WOULD HAVE COST $100,000 ON THE ROAD BEFORE THE BUDGET WOULD NOW COST $107,900.

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RESULT OF THE TAX ON TRANSFERS OF SECOND-HAND CARS, A $50,000 SECOND-HAND C'AR WOULD NOW BE ABOUT TWO PER CENT MORE EXPENSIVE.

"AGAIN, IS THIS A TAX ON THE POOR?". HE ASKED.

ON PERSONAL TAX ALLOWANCES, SIR PIERS SAID THOSE ALLOWANCES HE PROPOSED IN THE BUDGET WOULD RESULT IN JUST OVER ONE MILLION SALARIES TAXPAYERS, THAT WAS 89 PER CENT OF THE TOTAL, PAYING LESS DIRECT TAX THAN BEFORE.

THE IN

HE SAID TAKING HIS PROPOSALS FOR INCREASED ALLOWANCES AND RESTRUCTURING OF MARGINAL RATES TOGETHER, SOME 300,000 TAXPAYERS THE LOWER INCOME BRACKETS WOULD FIND THEIR TAX LIABILITIES REDUCED BY SUMS EQUIVALENT TO AT LEAST A 10 PER CENT INCREASE IN ALLOWANCES.

HE POINTED OUT THAT A FURTHER 30,000 LOW INCOME EARNERS PAY NO SALARIES TAX AT ALL.

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"ON THE OTHER HAND, THE REMAINING 100,000 TAXPAYERS AT THE TOP END OF THE SCALE WILL PAY AT THE SAME RATE AS BEFORE,' HE STRESSED.

HE WAS ELABORATING PROPOSED IN THE BUDGET.

FURTHER THE INDIVIDUAL TAX MEASURES HE

HE SAID THE DUTY ON HYDROCARBON OILS HAD INCREASED BY FIVE PER CENT. THIS, COMBINED WITH UNLEADED PETROL MEASURES AND CHANGES IN OIL IMPORT PRICES, MEANT THAT A LITRE OF LEADED PETROL COST 90 CENTS MORE, A LITRE OF DIESEL 26 CENTS LESS AND UNLEADED PETROL 11 CENTS LESS.

"THIS WAS THE ONE DUTY WHICH AFFECTED JUST ABOUT EVERYONE IN THE COMMUNITY AND FOR THAT REASON I CHOSE, QUITE DELIBERATELY, NOT TO INCREASE THE DUTY TO THE FULL EXTENT REQUIRED TO COVER INFLATION, SIR PIERS SAID.

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HE ALSO SAID HE PUT THE SPECIFIC DUTY RATE ON ALCOHOL UP BY

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PER CENT.

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