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
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.
In terms of their impact on the ratio between direct
and indirect taxes, my proposals will reduce the direct element
in 1988-89 from what would have been 61% of
tax revenue to
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.
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
more than offset by tax concessions estimated to cost
$2.2 billion in 1988-89, and $3.2 billion in a full year (28).
(28) Details can be found in Appendix F.
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