11.2.87
DUTIABLE COMMODITIES
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102.
general, the
I shall deal first with duties. In
principle underlying my proposals is that duty rates
should be maintained in real terms. My objective is to
secure regular small changes broadly in line with
inflation rather than less frequent, but inevitably
larger, increases.
There are some minor exceptions to
this principle but, by and large, I have followed it
closely.
Imported Hydrocarbon Oil
103.
I am
I am
I turn first to imported hydrocarbon oil.
aware that crude oil prices have increased with
consequential upward adjustments in fuel prices.
reluctant to add to the burden of consumers, but
nevertheless there is a need to maintain the real value of
the yield from this particular tax source. The duty rates
on hydrocarbon oil were revised last year (35).
I propose
to increase the duty rate on motor spirit from $2.30 to
$2.40 a litre and on diesel oil for road vehicles from
$1.15 to $1.20 a litre (36).
(35)
1986 Budget Speech, paragraph 99.
(36)
If the full increase is passed on to consumers, petrol prices will rise by about 2% and diesel prices by about 1.5%.
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