Wednesday, March 1, 1972
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REDUCED FUEL BILLS FOR HOUSEWIVES, FISHERMEN, INDUSTRIALISTS
Their
There is good news in today's Budget for housewives, fishermen, operators
of restaurants and cooked food stalls as well as small manufacturers.
monthly fuel bill is to be reduced.
The Financial Secretary, Mr. C.P. Haddon-Cave has proposed the abolition, aa from 6 o'clock tonight, of the duties on hydro-carbon oils other than furnace
oil, aircraft spirit, motor spirit and automotive diesel oil used by road
vehicles.
These include kerosene and liquified petroleum gas used mainly for cooking and heating by domestic households and by foodstalls and restaurants,
An Order, made under the Public Revenue Protection Ordinance, was signed
by His Excellency the Governor this morning.
The hydro-carbon oils affected cover a wide range of light oils used
in industry, such as benzene, turpentine and solvents; treated automotive diesel oil used by food stalls, restaurants, certain industries, harbour launches
and ferries and the fishing fleet.
Also affected are various mixtures of diesel oils used in small quantitie
by restaurants, a few industries and marine vessels with old-type diesel engines; sludge oil used for the manufacture of putty and water-proofing compounds, lubricating oil, light oils and diesel oils used in various admixtures ranging
from floor polishes to paints to insecticides.
In his Budget speech, the Financial Secretary said that all these oils
at present attracted a duty of ten cents per gallon and liquified petroleum gas was dutiable at two cents per pound.
"These are low rates," he said, "but it must be a cardinal rule of our
indirect tax system that it does not bear on industrial costs or on the basie
sost of living.
"Clearly, the duties on these oils offend this principle and I propose,
therefore, that they should be abolished......"
Mr. Haddon-Cave said he expected the relief accorded to households using
kerosene and L.P.G. for cooking would reduce the monthly fuel bill of the average
household by seven per cent and four per cent respectively.
"The annual saving on the fuel bills paid by fishermen will range from
$70 to $3,000 depending on size of craft."
"The total cost to the revenue in 1972-73
He told Legislative Council: will be of the order of $16.2 million, of which about $6.7 million will be in
respect of kerosene and liquidied petroleum gas, $1.6 million in respect of diesel oil used by launches, ferries and the fishing fleet, and the reminder (57.9 milli. in respect of the various oils used by industry."
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