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17
WEDNESDAY, FEBRUARY 27, 1985
A NOTE TO SIR JOHN'S SPEECH EXPLAINED THAT LOCAL BEER IS PRODUCED FOR SALE AT 1048 DEGREES ORIGINAL GRAVITY AND THE DUTY WAS $1.056 PER LITRE - OR $0.369 PER CAN. DUTY ON IMPORTED BEER AT 1048 DEGREES ORIGINAL GRAVITY WAS $1.21 PER LITRE - OR $0.423 PER CAN. THE DIFFERENTIAL RATE IN FAVOUR OF LOCAL BEER WAS ABOUT $0.054 PER CAN BUT THE DIFFERENCE IN RETAIL PRICE WAS MUCH GREATER. RECENT STATISTICS INDICATED A TREND OF INCREASING CONSUMPTION OF LOCALLY PRODUCED BEER.
ASSUMING THAT THIS INCREASE IN DUTY IS PASSED ON IN FULL TO THE CONSUMER, THE EFFECT ON ARBITRARILY SELECTED BRANDS OF BEER WOULD BE:
APPROXIMATE RETAIL PRICE PER CAN
DUTY INCREASE
PERCENTAGE
INCREASE
LOCAL
CARLSBERG
$2.10
SAN MIGUEL
$1.80
0.31
14.8
0.30
16.8
IMPORTED
TSINGTAO
$2.20
0.26
11.8
HEINEKEN
$2.90
0.26
9.0
PABST BLUE
RIBBON
$2.50
0.25
10.0
KIRIN
$2,20
0.23
10.5
EUROPEAN TYPE WINES AND SPIRITS WILL NOT BE SUBJECT TO ANY CHANGES IN DUTY THIS YEAR, SAID SIR JOHN. IN 1984 A NEW BASIS
+ OF LEVYING DUTY ON EUROPEAN TYPE WINES AND SPIRITS WAS INTRODUCED BY LOWERING THE SPECIFIC RATES AND IMPOSING A UNIFORM AD VALOREM RATE OF 20 PER CENT. NO CHANGE IS PROPOSED THIS YEAR. THERE HAVE BEEN FAR GREATER REDUCTIONS IN SALES OF BRANDY AND WHISKY THAN EXPECTED. THIS DUTY IS LEVIED FOR PURELY FISCAL REASONS. THERE IS NO POINT IN RAISING TAXATION IF LOWER REVENUE RESULTS, + HE SAID.
SIR JOHN SAID HIS NEXT PROPOSAL WAS TO INCREASE THE DUTIES LEVIED ON NON-EUROPEAN TYPE WINES AND SPIRITS FOR WHICH THE BASIC RATES WERE LAST RAISED IN 1983. +I PROPOSE TO RAISE THE BASIC DUTY RATES FROM $317 AND $292 A HECTOLITRE FOR IMPORTED AND LOCAL SPIRITS RESPECTIVELY TO A UNIFIED BASIC RATE OF $400. IN RESPECT OF NON-EUROPEAN TYPE WINES, I PROPOSE TO RAISE THE BASIC DUTY RATES FROM $628 AND $584, IMPORTED AND LOCAL RESPECTIVELY, TO $780. THESE INCREASES ARE AGAIN EFFECTIVE FROM THIS AFTERNOON. I ESTIMATE THAT THE NET ADDITIONAL REVENUE YIELD IN 1985-86 WILL BE $13 MILLION. THE AMOUNT IS SMALL. THIS IS A TIDYING UP
OPERATION.+
/A NOTE