Dutiable commodities
74.
I shall deal first with dutiable commodities. The principle underlying my proposals continues to be that specific duty rates should be maintained in real terms. I look for regular small changes broadly in line with inflation rather than less frequent, but inevitably larger, increases.
Imported hydrocarbon oils
75.
The duty rates on
on hydrocarbon oils were revised last year (29). I propose to increase the duty rate on motor spirit from $2.40 to $2.55 a litre, and on diesel oil for road vehicles from $1.20 to $1.27 a litre (30). The refund on diesel oil to the franchised bus companies will remain at
at 65¢ a litre. The
two increases come into effect this afternoon. I estimate the additional revenue yield to be $98 million in 1988-89.
Intoxicating liquor and imported alcohol
76.
Duty rates on intoxicating liquor were also revised last year (31). This year I have three proposals. First, for cider and perry, beer, non-European type wines and Chinese type spirits, I propose an increase of 6% in the specific duty elements to restore their real value.
(29) 1987 Budget Speech, paragraph 103.
(30)
If the full increase is passed on to consumers, petrol prices will rise by about 3.3% and diesel prices by about 2.1%.
(31)
1987 Budget Speech, paragraph 106.
/77. Secondly
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