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New taxes take effect Sunday

Increases in stamp duty, alcohol, tobacco and gasoline were introduced immediately after Finance Minister Eugene Cox delivered his Budget speech on February 16.

on Sunday.

Increases in stamp duty, alcohol, tobacco and gasoline were introduced immediately after Finance Minister Eugene Cox delivered his Budget speech on February 16.

But employers, home owners, car and motorbike owners, cellular phone users and people wanting to dump waste at Tynes Bay incinerator are among those who will have to pay out more from Sunday when the new charges take effect.

The payroll tax rate remains the same at 12.75 percent, but the cap on salary levels which exempt companies must declare goes down from $250,000 to $225,000.

The same cap will apply to local businesses to bring them into line with exempted companies.

Government is planning to increase the "notional'' remuneration declared by taxi drivers and self-employed professionals such as lawyers, architects, doctors and dentists in a bid to generate an extra $3 million.

Mr. Cox said in the Budget speech that these professionals were declaring average notional salaries of $70,000 when the market dictates they should be earning $100-150,000.

Taxi drivers will pay a flat fee of $1,500 per year, providing Government an extra $600,000.

A new land tax band will be introduced for the top two percent of properties with an annual rental value of $90,000, which will add $1.6 million to Government coffers.

Air passenger departure tax will go up by $5 to $25, and taxes to cruise ship operators will be restructured for 2002.

Ferry and bus fares will remain static, but motor vehicle licences will go up by five percent, generating $2.8 million.

A charge of $35 per metric ton will be introduced for commercial waste delivered to Tynes bay incinerator.

Annual $24 cellular telephone licences will be introduced to replace three year licences in a move which will earn Government $200,000.

Bank licence fees, which have not been reviewed for six years, go up to generate $1 million.