The basic personal allowance for salaries tax may be reduced from $108,000 to $100,000 - the level before concessions were given in the 1998-99 Budget. Those concessions caused the government to miss out on $56.8 billion in revenue over the following four years. Mr Tung also categorically stated in his policy address yesterday there would be an increase in taxes and fees. Passengers departing by land or sea would have to pay a border tax, formally called the boundary facilities improvement tax, starting early next year. In his last budget, delivered in March last year, financial chief Antony Leung Kam-chung aimed to introduce a bill to implement the tax to the legislature within 2002-03, hoping it would become law in 2004. The bill has not been submitted so far. The border tax is expected to raise about $1 billion if levied at $18 per person. It is also expected the concessions on a number of government fees and charges will be lifted. Last year, water and sewage charges were waived partially for one year which resulted in concessions worth $1.3 billion. Property rates concessions worth $7.6 billion were also offered. Other government fees and charges have been frozen since April 1998. This cost the government $160 million in 1998-99 alone. Mr Tung also said yesterday he would review the level of profits tax, currently standing at 16 per cent. The Taxation Institute estimated if profits tax is raised by one per cent, the extra revenue would be $2.6 billion per year. It also calculated that if the standard tax rate was increased from 15 to 16 per cent, it would bring in an additional $2.2 billion. Democratic Party chairman Yeung Sum said the government should not cut services or raise government charges. 'The reserves [fiscal and foreign] still remain at a high level of about $600 billion. The government should not cut expenditure and raise fees and charges. Otherwise the provision of social services would be affected,' he said.