XN000022-1994-05-18 — Page 23

WEDNESDAY, MAY 18, 1994

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TWO MOTIONS PASSED ON LOTTERY DUTY AND AIR TAX

LEGISLATIVE

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TWO

THE

COUNCIL TODAY (WEDNESDAY) PASSED MOTIONS TO REDUCE THE AIR PASSENGER DEPARTURE TAX AND THE LOTTERY DUTY AS WELL AS TO REDUCE THE GOVERNMENT'S SHARE OF LOTTERY PROCEEDS FAVOUR OF THE LOTTERIES FUND.

IN

MOVING THE MOTION TO AMEND THE FIRST SCHEDULE UNDER THE AIR PASSENGER DEPARTURE TAX ORDINANCE, THE FINANCIAL SECRETARY, THE HON SIR HAMISH MACLEOD, SAID THE TAX REDUCTION FROM $150 TO $50 ESTIMATED TO COST $960 MILLION IN 1994/95 AND $4.1 BILLION 1997/98.

SIR HAMISH SAID THE TOURISM INDUSTRY HAD MADE REPRESENTATIONS TO HIM ABOUT THE POSSIBLE ADVERSE EFFECT DEPARTURE TAX ON TOURISM AND THE WIDER ECONOMY.

"THEIR ARGUMENT IS A PERSUASIVE ONE," HE SAID.

WAS

UP ΤΟ

REPEATED

OF HIGH

THE REDUCTION MIGHT ALSO HELP TO REDUCE THE CONGESTION IN THE TRANSIT AREA OF THE AIRPORT, AS MORE TRANSIT PASSENGERS WOULD BE ENCOURAGED TO GO OUT THE AIRPORT TEMPORARILY.

EXTRA SPENDING BY THESE PASSENGERS WOULD BOOST THE RETAIL TRADE AND THE TOURISM INDUSTRY. LOCAL RESIDENTS WHO TRAVEL BY AIR WILL ALSO BENEFIT FROM THIS CONCESSION.

TURNING TO THE OTHER RESOLUTION THAT AMENDED THE BETTING DUTY ORDINANCE, MR MACLEOD SAID IT SOUGHT TO RAISE THE SHARE OF THE LOTTERY PROCEEDS TO BE ALLOCATED TO THE LOTTERIES FUND FROM 5 PER CENT TO PER CENT.

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THE LOTTERY DUTY IS CORRESPONDINGLY REDUCED FROM 30 PER CENT TO 20 PER CENT.

WITH THIS ADDITIONAL SOURCE OF FUNDING WHICH AMOUNT ΤΟ ABOUT $1.8 BILLION OVER THE NEXT FOUR YEARS, THE LOTTERIES FUND WILL BE IN A MUCH BETTER POSITION TO MEET THE KEY TARGETS SET OUT IN THE WHITE PAPER ON SOCIAL WELFARE AND THE GREEN PAPER ON REHABILITATION, HE SAID.

*IT WILL ALSO BE EQUIPPED TO FULFIL THE COMMITMENTS MADE IN THE GOVERNOR'S POLICY ADDRESS LAST YEAR TO BUILD SEVEN NURSING HOMES BY 1997 AND TO PROVIDE MORE CARE-AND-ATTENTION PLACES, HE ADDED.

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