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WEDNESDAY, APRIL 10, 1974
INCREASE IN DUTIES FOR INDUSTRIAL-TYPE ETHYL ALCOHOL
EXPLAINED
THE FINANCIAL SECRETARY, THE HON. PHILIP HADDON-CAVE, EXPLAINED TODAY THAT THE DUTIES ON INDUSTRIAL-TYPE ETHYL ALCOHOL WERE INCREASED LAST MONTH TO PRESERVE THE PARITY BETWEEN THE RATES FOR INDUSTRIAL- TYPE LI JURS AND NUN-EUROPEAN LIQUORS.
HE ADMITTED THAT HE HAD STATED IN HIS BUDGET SPEECH THAT THE DUTIES ON INDUSTRIAL-TYPE ETHYL ALCOHOL WOULD NOT BE INCREASED, BUT SAID THAT HE WAS LATER REMINDED BY THE DIRECTOR OF COMMERCE AND INDUSTRY THAT THE DUTIES ON ETHYL ALCOHOL HAVE ALWAYS BEEN KEPT IN LINE WITH THOSE FOR NON-EUROPEAN TYPE SPIRITS.
+THE REASON FOR THIS IS THAT, OTHERWISE, THERE IS AN ADVANTAGE TO BE GAINED FROM USING IMPORTED ETHYL ALCOHOL AS A BASE FOR CHINESE WINE, TO THE DETRIMENT OF LOCAL DISTILLERS, HE EXPLAINED WHEN REPLYING TO A QUESTION FROM THE HON. 100 PAK CHUEN.
MR. WOO WANTED TO KNOW WHY THE DUTIES ON INDUSTRIAL-TYPE ETHYL ALCOHOL GERE RAISED DESPITE THE FINANCIAL SECRETARY'S ASSURANCE TO THE CONTRARY IN HIS BUDGET SPEECH.
ACCORDING TO MR. HADDON-CAVE, THE EFFECT OF THE INCREASE ON INDUSTRIAL COSTS WOULD NOT BE TUO SIGNIFICANT.
ABOUT 75 PER CENT OF THE DUTY OF ETHYL ALCOHOL COLLECTED IN 1973/74 WAS IN RESPECT OF THE ETHYL ALCOHOL CONTENT OF IMPORTED PERFUMERY PRODUCTS. ABOUT 10 PER CENT WAS USED TO MAKE CHINESE VINE IN SPITE OF THE FACT THAT THE DUTY WAS THEN THE SAME AS FOR NON-EUROPEAN TYPE SPIRITS, WHILE ABOUT FIVE PER CENT WAS USED BY LABORATORIES.
ONLY ABOUT 10 PER CENT, HE ADDED, WAS USED BY INDUSTRY BECAUSE MOST OF THE ALCOHOL USED FOR INDUSTRIAL PURPOSES IN HONG KONG 15 DENATURED, THAT IS RENDERED NON-POTABLE, AND IS THUS DUTY FREE.
THE FINANCIAL SECRETARY NOTED THAT ETHYL ALCOHOL FOR THE USE OF ANY EDUCATIONAL, SCIENTIFIC OR CHARITABLE INSTITUTION IS EXEMPT FROM DUTY.
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