Page 2080 - Week 08 - Tuesday, 5 June 1990
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at $50 per month; that the ad valorem franchise fee of 40 per cent will apply to the wholesale value of X-rated videos distributed in the ACT; and that unlicensed trading in X-rated videos is an offence that will be prosecuted vigorously.
The scheme will generate approximately $4m in revenue with limited impact on ACT residents. Earlier tonight, we heard from my colleague Mr Collaery that something like 90 per cent of the trade in X-rated material is out of the ACT. So here we have a revenue-raising proposal which will go a long way towards providing much-needed community services, and we will attract this revenue not from the residents and ratepayers of this city but from people outside the ACT altogether.
This is a cognate debate and we are also addressing matters affecting the Taxation (Administration) (Amendment) Bill. For the record I would just like to recap that this Bill adds the X-rated video business franchise scheme to the list of duties, taxes and licence fees administered by the Commissioner for ACT Revenue.
The inclusion of the Business Franchise ("X" Videos) Bill as a tax law will ensure that the commissioner has the necessary powers, firstly, to enforce the licensing of X-rated video wholesalers and retailers; secondly, to inspect appropriate books and records; and, thirdly, where appropriate, to seize stocks of X-rated videos held by unlicensed traders. The Taxation (Administration) (Amendment) Bill also includes appropriate objection and appeal provisions in relation to fee assessments and decisions taken by the commissioner. The passage of this Bill is therefore essential, of course, to the introduction of the X-rated video franchise scheme.
In the debate, Mr Moore raised the issue of whether 40 per cent was an appropriate level of taxation on this particular product. It seems to me that, if we can tax cigarettes and tobacco to the tune of 35 per cent and not have that industry screaming blue murder about going broke, I am pretty sure that we can put a similar tax at a similar level on a legal industry here in the ACT which I am sure will be able to bear the costs - - -
Mr Jensen: It has asked to be taxed.
MR DUBY: As Mr Jensen has interjected, in the past the industry has asked to be taxed - but not taxed as much perhaps as others have thought appropriate. Speaking as Finance Minister, I guess, if you have a tax and people do not squeal about it, you are not taxing enough. I am of the opinion that a 40 per cent tax is both appropriate and desirable for the benefit of the ACT. I commend the Bills to the house.
Question resolved in the affirmative.
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