SECRETH嵩度機密
coming to or returning to Hong Kong
Hong Kong at present includes 200 cigarettes and a litre of wine or spirits (64). Whilst no firm
statistics are available on the extent to which returning travellers are availing themselves of this duty free allowance,
there appears to have been a considerable increase consequent on the increases in the rates applied to
applied to dutiable commodities in
the 1983 and 1984 Budgets. Consumer resistance to price increases resulting from higher duty on tobacco and liquor has
accounted for some fall in revenue yields, but there can be little doubt that a significant contributory factor is the very large increase in the number of returning passengers availing themselves of the full duty free concession. Indeed in good Hong Kong fashion some travellers are reportedly so engaged full
time. For example, the duty paid on tobacco in 1983-84 decreased 26% on the previous year. In the first six months of this financial year the duty paid declined a further 51% on the same period in the previous year. For brandy the figures are decreases of 27% and 70% respectively. In neither case is a
drop in consumption the full answer. The situation is deteriorating rapidly. The trade is fully aware of these facts which have been well aired in the press. My proper concern is the revenue loss in respect of duty paid on tobacco and liquor in particular. Finance Branch estimates that this loss could be up to $450 million in 1984-85. Whatever the actual figure, it is very large indeed and I cannot accept a situation which is depriving Hong Kong of revenue estimated to be up to 30% of the originally estimated yield from
from these two duties in
in 1984-85.
For this reason I reject the option of doing nothing.
(64) The detailed concession provided under Regulation 12(e) of the Dutiable
Commodities Regulations (Cap. 109) is -
Liquor Tobacco
Perfume
Toilet water
- one litre of wine or spirits
- 200 cigarettes or 50 cigars or
250 grams of smokers' tobacco
- 60 millilitres
-
250 millilitres
G.F. 316
UNCLASSIFED
SECRET 高度機密