WEDNESDAY, JULY 5, 1978
25
PHARMACEUTICAL PRODUCTS CONTAINING ALCOHOL WILL BE
EXEMPTED FROM DUTY
******
A EILL TO EXEMPT FROM DUTY PHARMACEUTICAL PRODUCTS CONTAINING ALCOHOL TODAY RECEIVED ITS SECOND READING IN THE LEGISLATIVE COUNCIL.
MOVING THE DUTIABLE COMMODITIES (AMENDMENT) (NO. 2) BILL, THE ACTING DIRECTOR OF TRADE, INDUSTRY AND CUSTOMS, THE HON. WILLIAM DORWARD SAID THAT AS THE LAW NOW STOOD, DUTY WAS NOT NORMALLY CHARGED ON MIXTURES CONTAINING ALCOHOL WHERE THE GOVERNMENT CHEMIST CERTIFIED THAT THEY COULD NOT BE CONVERTED
INTO INTOXICATING LIQUOR.
HOWEVER, AN EXCEPTION TO THIS WAS WHERE THE LIQUOR IS CONTAINED IN A TOILET PREPARATION, IN WHICH CASE DUTY IS LEVIED AT THE RATE OF $9.90 A GALLON ON THE TOTAL VOLUME OF THE PRODUCT.
+WHILST THIS IS A REASONABLE LEVY ON SUCH GOODS AS PERFUMES, SHAVING LOTIONS, HAIR SPRAYS AND THE LIKE, IT IS CONSIDERED INAPPROPRIATE THAT IT APPLIES TO COUGH SYRUPS, EYE LOTIONS AND EVEN BELIEVE IT OR NOT BABIES' GRIPE WATER
OTHER SUBSTANCES
AHICH CONTAINS ALCOHOL
EUT ARE FOR MEDICINAL PURPOSES.
+BUT BECAUSE OF THE PRESENT DEFINITION OF TOILET PREPARATIONS, WHICH IS A LEFTOVER FROM THE DAYS WHEN PROPRIETARY MEDICINES WERE DUTIABLE COMMODITIES IN THEIR OWN RIGHT AND NOT MERELY IF THEY CONTAINED ALCOHOL, THEY ARE SO LIABLE,+ MR. DORWARD SAID.
THE PROPOSED AMENDMENT WILL EXEMPT FROM DUTY THOSE SUBSTANCES WHICH ARE INTENDED FOR USEIN MEDICINE, VETERINARY MEDICINE AND CHIROPODY.
THE CONSEQUENT REDUCTION IN ANNUAL REVENUE IS ESTIMATED AT ROUGHLY $600,000.
THE REVENUE COLLECTED ON PERFUMERY PRODUCTS AND COSMETICS WHICH AMOUNTS TO SOME $4.5 MILLION ANNUALLY
ILL BE UNAFFECTED.
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