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Wednesday, February 27, 1974
There will be corresponding increases for liquors above
specific strength.
On a standard (reputed quart) bottle of brandy, the increase
is 74, of whisky $2.75, of sparkling wines $2, of still wine less than
$1, and of beer five cents. The new rates will benefit the revenue
by some $47 million in 1974/75.
Tobacco Duties
Duties on tobacco are raised by 25 per cent, as from today!
In round figures the increases are $2 a pound for unmanufactured tobacco,
$2.80 a pound for cigars, $2.70 a pound for cigarettes,and $2.20 for
other manufactured tobacco, except Chinese prepared tobacco.
In terms of a packet of cigarettes, the increase will be about
10 cents whether manufactured locally or imported.
The extra revenue derived from these increases will be $37 million.
The Financial Secretary also proposed a number of tax reforms,
including one to add a further 10 per cent surcharge to the present five
per cent surcharge for late payments of earnings and profits taxes and
rates, This is intended to encourage prompter settlements.
On rates, the Financial Secretary proposed to bring the prosent
11 per cent rate charge applicable to the New Territories up to the
15 per cent level as in urban areas.
However, he suggested that for the first four years of assessment
newly rateable areas (excluding extensions to existing rating areas)
should be rated at 11 per cent only so that the change will not be too
sudden.
/For 1974/75