65.
In
Although I 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 618 in 1988-89 before my revenue measures. The comparable revised estimate for 1987-88 is
is 58% and the actual share for 1986-87 was 60%.
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