XN000022-1993-03-31 — Page 25

WEDNESDAY, MARCH 31, 1993

RATHER

THE FINANCIAL SECRETARY SAID HE WAS DISAPPOINTED AT THE NARROW FOCUS OF SOME OF THOSE WHO THOUGHT THAT WHAT THE BUDGET IS DOING FOR BUSINESS WAS INADEQUATE.

"WE CANNOT AFFORD THE MINDSET WHICH SERS BUSINESS AS SYNONYMOUS WITH MANUFACTURING INDUSTRY OR WHICH SEES BENEFITS IN TERMS ONLY OF TAX CONCESSIONS OR SUBSIDIES.

די

GOVT DOES NOT IGNORE NEEDS OF LOW-INCOME GROUP: FS

LOW

THE GOVERNMENT DOES NOT IGNORE THE NEEDS WHICH RELATIVELY INCOME CAN CREATE, THE FINANCIAL SECRETARY, THE HON HAMISH MACLEOD, SAID TODAY (WEDNESDAY).

IN FACT, THE GOVERNMENT'S SPENDING ON SOCIAL SECURITY AND TAX SYSTEM IS HEAVILY WEIGHTED IN FAVOUR OF LOWER INCOME GROUPS, MR MACLEOD SAID IN THE RESUMED BUDGET DEBATE IN THE LEGISLATIVE COUNCIL.

HALF OF ALL EMPLOYEES PAY NO SALARIES TAX.

ALMOST HALF THE POPULATION LIVE IN HEAVILY

HOUSING.

MEANS.

"NO ONE IN DENIED MEDICAL OR HOSPITAL CARE

SUBSIDISED PUBLIC

THROUGH LACK OF

"THE BEST CONTRIBUTION WE CAN MAKE TO IMPROVING THE WELI BEING OF LOWER INCOME GROUPS IS OUR COMMITMENT TO IMPROVED PUBLIC SERVICES AND OUR CONTINUED INVESTMENT IN FUTURE GROWTH, WHICH BRINGS WITH I'T FULL EMPLOYMENT AND STEADILY RISING STANDARDS OF LIVING FOR THE WHOLE

COMMUNITY."

AN INCREASE IN PROPERTY RATES WOULD OF COURSE HAVE INCREASED THE REVENUE FROM INDIRECT TAX, AND PROVED A PARTICULARLY RELIABLE SOURCE OF REVENUE, HE SAID.

THIS.

"BUT [ ACCEPT THAT THERE IS A SERIOUS POINT UNDERLYING ALL

"WHERE POSSIBLE, I AGREE WE SHOULD PREFER STABLE SOURCES OF REVENUE OVER VOLATILE SOURCES OF REVENUE.

EL

THIS I

IS A MUCH MORE COMPLEX ISSUE THAN THE RATIO BETWEEN DIRECT AND INDIRECT TAXATION.

INDIRECT TAXES AS A PROPORTION OF TOTAL REVENUE HAVE NOT IN CHANGED GREATLY OVER THE YEARS. INDIRECT TAXES WERE REVENUE IN 1983-84, AND ARE 26.8% OF REVENUE IN THE 1993-94

FACT

25.3% OF ESTIMATES.

THE MAJOR

BUT MR MACLEOD SAID THE PACT WAS ALSO THAT SOME OF INDIRECT TAXES WERE MORE VOLATILE THAN THE MAJOR DIRECT TAXES.

"

I AM THINKING FOR EXAMPLE OF STAMP DUTY AND THE FIRST REGISTRATION TAX, BOTH VERY VOLATILE INDIRECT TAXES.

/"SO, I