13 -
WEDNESDAY, FEBRUARY 27, 1985
FUEL DUTY RISE KEPT TO 10 PER CENT
****
THE DUTY ON MOTOR SPIRIT HAS BEEN INCREASED FROM $2 TO $2.20 A LITRE AND ON DIESEL OIL FOR ROAD VEHICLES FROM $1 TO $1.10 A LITRE.
ANNOUNCING THIS SIR JOHN SAID THAT THESE INCREASES OF 10 PER CENT ARE AGAIN MUCH LESS THAN REQUIRED TO MAINTAIN THE REVENUE YIELD IN REAL TERMS IN THE LIGHT OF INFLATION SINCE 1983. FALLING INTERNATIONAL OIL PRICES COULD LESSEN THE BURDEN.
IN A NOTE IT WAS POINTED OUT THAT THE DUTY ON MOTOR SPIRIT WAS INCREASED BY 70 CENTS A LITRE, FROM 50 CENTS A LITRE, TO_$1.20 IN MAY 1982 FOR TRANSPORT POLICY REASONS. IN THE 1983 BUDGET IT WAS INCREASED AGAIN BY A FURTHER 80 CENTS TO $2. THE DUTY RATE ON DIESEL OIL FOR ROAD VEHICLES WAS NOT ALTERED IN MAY 1982 AND IN THE 1983 BUDGET IT WAS INCREASED FROM 35 CENTS TO $1 A LITRE - WITH THE 65 CENTS INCREASE BEING REFUNDED TO THE FRANCHISED BUS COMPANIES.
SIR JOHN SAID HE DID NOT INTEND TO REVISE THE CURRENT REFUND TO THE BUS COMPANIES AS THE INCREASED DUTY WOULD COST THEM ABOUT $11.1 MILLION IN A FULL YEAR WHICH WOULD HAVE THE EFFECT OF INCREASING COSTS BY AN AVERAGE OF ABOUT ONE HALF OF ONE CENT PER PASSENGER. THERE SHOULD BE, THEREFORE, LITTLE OR NO EFFECT ON FARES.
THE INCREASES IN MOTOR SPIRIT AND DIESEL OIL FOR ROAD VEHICLES DUTIES BECAME EFFECTIVE FROM THIS AFTERNOON (WEDNESDAY) AND THE ESTIMATED ADDITIONAL YIELD IN 1985-86 WILL BE ABOUT $110 MILLION.
DUTY PAYABLE IMMEDIATELY
*****
DUTIES ON COSMETICS AND NON-ALCOHOLIC BEVERAGES CAME INTO EFFECT AT 2.30 PM TODAY (WEDNESDAY).
THE DUTY ON COSMETICS IS 25 PER CENT OF THEIR VALUE, CALCULATED ON THE BASIS OF THE CIF PRICE IN THE CASE OF IMPORTS AND THE WHOLESALE PRICE IN THE CASE OF LOCAL PRODUCTS. THE DUTY ON NON-ALCOHOLIC BEVERAGES IS $60 PER HECTOLITRE.
TRADERS ARE REQUIRED TO REPORT TO THE CUSTOMS AND EXCISE DEPARTMENT AS SOON AS POSSIBLE ON ALL COSMETICS AND NON-ALCOHOLIC BEVERAGES IMPORTED INTO HONG KONG OR MANUFACTURED AFTER 2.30 PM TODAY (WEDNESDAY).
UNDER A REVENUE PROTECTION ORDER, AMENDMENTS HAVE BEEN INTRODUCED TO THE DUTIABLE COMMODITIES ORDINANCE, MAKING BOTH COSMETICS AND NON-ALCOHOLIC BEVERAGES DUTIABLE COMMODITIES.
/THE ORDINANCE