TNAG-1361-FCO40-1807-Hong-Kong-Hansard-reports-and-minutes-of-the-meetings-of-the-1985 — Page 190

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subsidise those who visit Macau. If we sought to redress the situation in one step, the increases would need to be very steep

indeed. This is a fine illustration of the need for more

frequent adjustments. As a first measure, therefore, I propose to increase passenger embarkation fees from $8 to $15 and the main berthing fees from $1 to $2 a ton, both taking effect to coincide with the opening of the new Macau ferry terminal in about June 1985. Assuming ten months' yield, additional revenue for 1985-86 should amount to $30 million.

110.

There are, of course, other land and sea terminals

where operating costs are not being recovered. We intend to

have a detailed look at them in the near future, but I am reluctant to raise further revenue from those using patently inadequate facilities. The time for change will come when decent buildings are available.

Dutiable Commodities

111.

I turn now to duties.

Imported Hydrocarbon Oils

112.

The duty rates on hydrocarbon oils were last revised in 1983 (51). I propose to increase the duty rate on motor spirit from $2 to $2.20 a litre and on

on diesel oil for road vehicles

from $1 to $1.10 a litre. These increases of 10% each are again much less than required to maintain the revenue yield in real

terms in the light of inflation since 1983. Falling international oil prices could lessen the burden.

(51) The duty on motor spirit was increased by 70¢ a litre from 50¢ a litre to $1.20 in May 1982 for transport policy reasons. In the 1983 budget it was increased again by a further 80 to $2.00. The duty rate on diesel oil for road vehicles was not altered in May 1982. In the 1983 budget it was increased from 35 to $1 a litre but the 65¢ increase was refunded to the franchised bus companies.

G.F. 316

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