TNAG-1725-FCO40-2438-Minutes-and-Hansards-of-the-Legislative-Council-of-Hong-Kong-1988 — Page 42

65.

In

Although I have forecast a slowdown in economic growth, revenue in 1988-89 will still be benefiting from two years of exceptional economic performance in 1986 and 1987. particular, yields from profits tax, salaries tax, vehicle first registration tax and many of our fees and charges are expected to remain buoyant. The yield from rates will benefit from the recently announced property revaluation.

66.

I have, however, been deliberately cautious on stamp duty, because stock market turnover recorded in the first half of 1987-88 was exceptionally high and unlikely to be repeated in 1988-89. Whilst the impact of the slowdown in economic growth on land prices is not yet clear, I have again preferred to use relatively conservative assumptions as to land sale yields.

67.

In terms of the proportion of direct

to indirect

taxes, the direct element is forecast to rise slightly to about

per cent 618 in

before my revenue measures.

1988-89

The comparable per cent. revised estimate for, 1987-88 is 58% and the actual share for

for cent 1986-87 was 608

cap revised сар

32

/Summary