Tobacco
80.
Members will recall
recall that last month this Council approved the Dutiable Commodities (Amendment) Ordinance 1988, which amended Part II of the Schedule to the Dutiable Commodities Ordinance in order to
in order to remove
remove the duty then payable on a weight basis on the import of unmanufactured tobacco and cigarettes, and to replace it with a duty payable per 1,000 cigarettes. The duty rate imposed of $165 per 1,000 cigarettes revenue neutral; the rates for other items in the Schedule were unchanged.
was
81.
To
Tobacco duty rates were last revised in 1987 (34). keep all these rates broadly in line with inflation, I propose to increase the duty on cigarettes from $165 to $175 per 1,000 sticks. The duty on cigars will be increased from $220 to $233 a kilogram; on smoking tobacco from $200 to $212 a kilogram; and on Chinese prepared tobacco from $43 to $45.50 a kilogram (35). These increases come into effect this afternoon. I estimate the additional revenue yield to be $69 million in 1988-89.
Fees and charges
82.
I
first,
I turn now to fees and charges. For 1988-89, propose to increase the following fees and charges vehicle and driving licence fees; secondly, bank and deposit-taking company licence and registration fees; thirdly, passenger embarkation and berthing fees; and, lastly, postal and telecommunication fees and charges.
(34) 1987 Budget Speech, paragraph 111.
(35)
If the full duty increase is passed on to consumers, the average price per packet of cigarettes will increase by about 20 cents. Further details can be found in Appendix F(1).
/Vehicle
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