4.2.87
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111.
I propose, therefore, to increase the duty on
imported unmanufactured tobacco from $190 to $200 a
kilogram, and that on imported cigarettes from $210 to
$220 a kilogram (40). I estimate an additional revenue
yield of $47 million in 1987-88. On the basis proposed,
the duty differential between imported unmanufactured
tucco and imported cigarettes will remain at about 10%.
112.
I also propose to increase the duty rate on
cigars from $210 to $220 a kilogram, and that on
manufactured tobacco (other varieties) from $190 to $200 a
kilogram. This will keep them in line respectively with
those on imported manufactured cigarettes and imported
unmanufactured tobacco. Finally, I propose to revalue the
duty on Chinese prepared tobacco in line with inflation
since 1985 when it was last revised, by increasing it from
$40 to $43 a kilogram. I estimate the additional revenue
yield from the two proposals to be $8 million in 1987-88.
(40)
If the full duty increase is passed on to consumers, the average price per packet of cigarettes will increase by about 2.4% for locally made products and 2% for imported varieties. Further details can be found in Appendix E.
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