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16. Then there is the question of stamp duty on contract notes: I do not think the rate of $8 per mille is dampening down the market, but the old rate of $4
per mille was doubled at the height of the boom and so everyone but me argues that the $8 rate is harmful. As we must stand absolutely firm on the taxation of trading profits, I think it would be worthwhile making a gesture to the market (and may be turnover will pick up and offset the cost) by reducing the rate to $6 per mille.
17.
Excise duty on tobacco on imported cigarettes needs to be adjusted upwards from $18.50 per pound to $20.15 per pound for, with the introduction of what is known as the "puffing" process, a greater number of cigarettes can be manufactured from a given weight of tobacco thereby depriving the Treasury of revenue and effectively narrowing the present differential enjoyed by local manufacturers (who do not use the "puffing" process). Not all imported cigarettes are "puffed": (but most American cigarettes are) and so some imported brands will bear a higher rate of duty per weight of tobacco used. We also have a probem of evasion in respect of diesel fuel: kerosene is being mixed in by taxi drivers. The revenue is suffering to some extent and much black
smoke is being emitted.
Not
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18. When Commonwealth Preference Tax on new motor
vehicles was abolished in December 1975, we put all
private cars on to First Registration Tax at a flat rate
of 30%.
repeat not! for transport policy reasons, I think there is a good case for differentiating "basic", "semi-luxury" and "luxury" cars by hitting the latter two groups harder. The present system is far too regressive and a token attack on the "rich" might be no bad political thing.
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