TNAG-0453-FCO40-518-Budget-of-Hong-Kong-1974-1975-1975 — Page 153

and the Green Paper.

20

And to look for other sources of indirect taxation as my honourable Friend Mr. P.C. Woo has suggested, would simply not be practicable in the time available; and the administrative machinery necessary for exploiting them would take far too long to set up. In any case, such other possible sources of indirect taxation

as durable consumer goods should only be tapped as a matter of deliberate policy and not in response to opposition to higher taxes on road users. Nor do I think it would be equitable to place the load on other existing sources of indirect taxation.

50.

But, to repeat, to remove any ambiguity from my motives, I am certainly willing to revise my original proposals so as to raise the same revenue with the minimum of changes

to the present structure.

51.

(11) Vehicle Licences

Dealing first with cars of all classifications and motor cycles, this could be done by increasing the present six rates for private cars by 176%. Rounding off to the nearest $50 and maintaining a reasonable progression, the rates

would then be

Up to 1,000 c.c.

Up to 1,500 c.c.

Up to 2,500 c.c.

$350

$500

$750

Up to 3,500 c.c.

$1,000

Up to 4,500 c.c.

$1,250

Over 4,500 c.c.

$1,500

At $49 million, the increase in revenue from these proposals will be $3 million less than the increase from my original

proposals.

52.

Public cars would continue to pay on the same basis as private cars plus $30 for each seat for a passenger.

53.

The same increased revenue from taxis could be

achieved by doubling the fee for the driver and for each seat for a passenger to $20 and $60 respectively.

54.

I still think the pre-budget licence fee of $70

for motor cycles is unrealistically low and that my original proposal to raise it to $200 was fair.

However, I propose

/to...