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高度機密

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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

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.

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