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increasing its
less tobacco,
weight.
The
net effect of
this
is
and hence on our present system less For fixed level of cigarette
therefore.
duty, per cigarette.
consumption,
the
use of
puffed
results in falling revenue.
tobacco
7.
In
view of these
problems,
I have
concluded that we need a major overhaul of the current Accordingly, I, propose that
ん
tobacco duty structure.
duty on
on cigarettes should weight basis.
no longer be levied
on a
Instead, I propose that it be levied on a "per cigarette" basis and applied only to those or imported, which cigarettes, whether locally made
the
local market.
for destined are
will have
of advantages. number a
to administer.
The new system
It will be easy It will obviate the need for a drawback system. And it will remove problems associated with manufacturing loss allowance and weight adjustments. with an opportunity In addition, it will provide us
to
remove the duty differential between locally made doubt be no this will and and imported cigarettes,
of The key aims
and are simplicity
welcomed by our trading partners.
the change I
evenhandedness.
am proposing
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revenue
On
yield
that
the basis is to be maintained
the
current
and assuming
level of
no
I propose a
uniform
change in consumption pattern, duty rate of $165 per 1000 cigarettes for both local and imported brands. Duties on other tobacco products, such as cigars and snuff, will continue to be levied according to weight, given their immense diversity in size and quality.