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WEDNESDAY, FEBRUARY 27, 1985
+ THE PROPOSED HIGHER INCREASE OF 29 PER CENT FOR IMPORTED RAW TOBACCO WILL REDUCE THE DIFFERENTIAL TO AN ALL TIME LOW OF 23.5 PER CENT SINCE ITS INTRODUCTION IN 1949. HOWEVER, I MUST WARN THE TOBACCO TRADE THAT DURING 1985 I WILL REVIEW THE MERITS OF IMPOSING A PURE AD VALOREM DUTY ON TOBACCO, FOLLOWING A SIMILAR
THE SAME IMPLEMENTATION IN RESPECT OF LIQUOR IN 1984. CONSIDERATIONS, NAMELY LOGIC AND EQUITY, COULD BE APPLIED.+
SIR JOHN SAID HE ALSO PROPOSED TO INCREASE THE BASIC DUTY RATE ON CIGARS FROM $175 A KILOGRAM TO $210; ON CHINESE PREPARED TOBACCO FROM $33 A KILOGRAM TO $401 ON SMOKING TOBACCO FROM $140 A KILOGRAM TO $170.
ALL INCREASES ARE EFFECTIVE IMMEDIATELY, HE POINTED OUT. +TAKING CONSUMER RESISTANCE INTO ACCOUNT ESTIMATE AN ADDITIONAL $110 MILLION IN REVENUE YIELD IN 1985-86 AS A RESULT OF THESE PROPOSALS, HE SAID.
A FOOTNOTE GAVE SOME EXAMPLES OF THE EFFECTS OF THE PROPOSED INCREASES ON ARBITRARILY SELECTED BRANDS. KENT AND MARLBORO PACKS OF 20 NOW SELLING AT ABOUT $7 WILL BE SUBJECT TO A 7.1 PER CENT, OR 50 CENTS INCREASE. VICEROY AND WINSTON 20S NOW SELLING AT $6.50 WILL BE SUBJECT TO A 7.7 PER CENT, OR 50 CENTS, INCREASE.
LOCALLY MANUFACTURED CIGARETTES: DOUBLE HAPPINESS 20S, NOW SELLING AT ABOUT $4.50 WILL GO UP 15.6 PER CENT, OR 70 CENTS; GOOD COMPANION 20S, NOW SELLING AT ABOUT $4.50 WILL GO UP 60 CENTS, OR 13.3 PER CENT; HILTON 20S, NOW SELLING AT ABOUT $4.50 WILL GO UP 55 CENTS, OR ABOUT 12.2 PER CENT.
ALHAMBRA CORONAS CIGARS 25S, NOW SELLING AT ABOUT $98 WILL BE RAISED BY $6.60, OR 6.7 PER CENT. CHINESE PREPARED TOBACCO DOUBLE SWALLOW BRAND, 1 TAEL, NOW SELLING AT ABOUT $3 WILL GO UP 22 CENTS, OR 7.3 PER CENT. MIXTURE NO. 79, 7 OZ, NOW SELLING AT ABOUT $64 WILL GO UP $6, OR 9.4 PER CENT. COPENHAGEN SNUFF 1,20 OZ, NOW SELLING AT ABOUT $14 WILL GO UP $1 OR 7.1 PER CENT.
A FURTHER FOOTNOTE EXPLAINED THE PERCENTAGE DIFFERENCE BETWEEN THE RATES IMPOSED ON IMPORTED CIGARETTES AND IMPORTED RAW TOBACCO1 1949 - 60 PER CENT: 1960 - 40.9 PER CENT;
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1964 48.3 PER CENT# 1966 - 36.3 PER CENT: 1974 - 36 PER CENT; 1975 - 24.2 PER CENT 1978 - 35.2 PER CENT: 1983 - 35.5 PER CENT.
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