XN000022-1992-03-04 — Page 25

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WEDNESDAY, MARCH 4, 1992

"I

HAVE TOLD THE SOFT DRINKS INDUSTRY THAT WE EXPECT NO PRICE INCREASES FOR AT LEAST TWELVE MONTHS OR, WHERE INCREASES WERE INTRODUCED THIS YEAR, A PRICE REDUCTION TO REFLECT FULLY THE ABOLITION OF THE DUTY.

"THE INDUSTRY'S REPRESENTATIVE ASSOCIATION IN HONG KONG HAS UNDERTAKEN ΤΟ PERSUADE ITS MEMBERS TO DO SO. AS A RESULT, THERE SHOULD BE A SMALL BUT BENEFICIAL EFFECT ON THE CONSUMER PRICE INDICES, HE SAID.

LI

ENTERTAINMENTS TAX ON CINEMA TICKETS

THE FINANCIAL SECRETARY PROPOSED TO ABOLISH THE TAX IN RESPECT

OF CINEMA TICKETS WITH EFFECT FROM APRIL 1 THIS YEAR.

HE POINTED OUT THAT THE TAX AT PRESENT ACCOUNTED FOR ROUGHLY 10% OF THE COST OF A NORMAL CINEMA TICKET AND THE ABOLITION SHOULD THEREFORE HELP то KEEP DOWN THE COST OF THIS POPULAR FORM OF ENTERTAINMENT.

"IT SHOULD ALSO HAVE A USEFUL, IF MINOR, IMPACT ON THE CONSUMER PRICE INDICES. THE COST TO THE REVENUE WILL BE ONLY $130 MILLION A YEAR.

"I HAVE RECEIVED ASSURANCES FROM HONG KONG'S TWO LARGEST CINEMA OPERATORS THAT THE FULL BENEFIT OF THIS CONCESSION WILL BE PASSED ON TO CINEMA-GOERS AND THAT THERE WILL BE NO INCREASE IN THE PRICE OF TICKETS IN THE COMING YEAR," HE SAID.

ENTERTAINMENTS TAX IS LEVIED UNDER THE ENTERTAINMENTS TAX ORDINANCE INTRODUCED OVER 60 YEARS AGO IN RESPONSE TO THE NEW-FANGLED "CINEMATOGRAPHIC EXHIBITIONS" OF THE TIME.

MR MACLEOD SAID THE PROVISIONS RELATING TO CINEMAS WERE AT PRESENT OUTDATED AND ARGUABLY PUT CINEMAS AT AN UNFAIR DISADVANTAGE WHEN COMPARED WITH HOME ENTERTAINMENT.

DUTY ON DIESEL OIL

BUS

THE FINANCIAL SECRETARY PROPOSED TO EXEMPT THE FRANCHISED COMPANIES COMPLETELY FROM THE DUTY ON DIESEL FUEL, WITH EFFECT FROM THIS AFTERNOON (WEDNESDAY).

"THIS CONCESSION WILL BE FULLY REFLECTED IN FUTURE ADJUSTMENTS TO BUS FARES. THIS PROPOSAL WILL COST $190 MILLION A YEAR AND, AGAIN, WILL HELP TO COMBAT INFLATION," HE SAID.

BEFORE THE EXEMPTION, FRANCHISED BUS COMPANIES REFUND OF 65 CENTS A LITRE ON DUTY PAID FOR DIESEL OIL.

RECEIVED A

/STAMP DUTY

E