TNAG-1725-FCO40-2438-Minutes-and-Hansards-of-the-Legislative-Council-of-Hong-Kong-1988 — Page 44

70.

with these considerations in mind, I am proposing a

package of measures which will reduce Our revenue yields by $1.8 billion in 1988-89, but, more importantly, by $2.7 billion in a full year. As I have indicated, the full year cost is

дет сент equivalent to about 5 of recurrent revenue yields. In 1988-89, these proposals will, therefore, reduce the estimated overall surplus on General Revenue Account from $5.6 billion to $3.8 billion and the overall surplus, when taken together with our funds, from $7.3 billion to $5.5 billion.

71.

5*།

In terms of their impact on the ratio between direct and indirect taxes, my proposals will reduce the direct element

per cent in 1988-89 from what would have been 61

61 of tax revenue to fer cent 60%. Pending the further consideration of new indirect sources, to which I have referred, my proposals are intended merely to contain what is a tendency for the naturally buoyant direct

sources to increase as a share of the whole.

72.

9

I shall now present my revenue proposals.

REVENUE MEASURES

73.

The package is made up of a number of revenue-raising measures designed to yield $390 million in 1988-89, equivalent

to $507 million in a full year.

But this additional revenue is

by tax concessions estimated to cost $2.2 billion in 1988-89, and $3.2 billion in a full year (28).

more

than offset

(28) Details can be found in Appendix F.

34

/Dutiable

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