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Wednesday, February 28, 1973
INCREASE IN DUTY ON ALCOHOLIC LIQUORS
The rate of duty on alcoholic liquors of over 78 degrees proof has
been increased as from today.
An order under the Public Revenue Protection Ordinance providing for
such an increase was signed by the Governor this morning.
The new rates for liquors of over 78 degrees proof will be 96 cents
in the case of liquor of Hong Kong and Commonwealth origin and $1.08 in the
case of liquor of non-Commonwealth origin.
The effect of the increases will vary from a few cents to 39 cents
per bottle, except for some particularly strong liquors for which the increases
will be much higher.
This was disclosed by the Financial Secretary, the Hon. Č.P. Haddon-Cave,
when he proposed tax reform on duty on imports of alcoholic liquors in bulk.
He recalled that in 1962 the rates of duty on whisky, brandy and other
spirituous liquors of 78 degrees proof were increased, but the rates of duty
above this strength remained, by an oversight, unchanged.
"Liquor importers have recently realised that, as a result they can
pay less duty per bottle by importing high proof liquor and watering it down
to lower proof levels," the Financial Secretary said.
"There is thus a small but quite unjustifiable potential loss of revenue."
Mr. Haddon-Cave also proposed that the duty on certain non-alcoholic
beverages, known as table waters, should be abolished from April 1 next.
The cost to the revenue of this abolition will be about $10.5 million.
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