WEDNESDAY, FEBRUARY 27, 1985
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$100 MILLION FROM BEAUTY BUSINESS *****
A 25 PER CENT AD VALOREM DUTY ON COSMETICS WAS PROPOSED BY THE FINANCIAL SECRETARY, SIR JOHN BREMRIDGE, TODAY (WEDNESDAY).
SUCH A DUTY WAS FIRST INTRODUCED IN 1947, HE SAID, BUT IT WAS ABOLISHED IN 1959 AS A RESULT OF SMUGGLING, UNDER-DECLARATION OF VALUES AND FALSE RETURNS BY MANUFACTURERS. + I AM NOW PERSUADED THAT THESE PROBLEMS NO LONGER OBTAIN IN PRESENT DAY CIRCUMSTANCES,+ SIR JOHN TOLD THE LEGISLATIVE COUNCIL.
HE POINTED OUT THAT A LARGE NUMBER OF COSMETIC PRODUCTS HAD A HUGE MARK-UP IN THE RETAIL PRICE AND SHOULD THE FULL EFFECTS OF THE REINTRODUCED DUTY BE PASSED ON TO THE CONSUMER, WHICH WAS BY NO MEANS INEVITABLE IN VIEW OF COMPETITION, RETAIL PRICES COULD INCREASE BY BETWEEN TWO AND 13 PER CENT WHILE THE YIELD IN 1985-86 WAS ESTIMATED TO BE $100 MILLION.
A FOOTNOTE GIVES ARBITRARILY-SELECTED EXAMPLES. THE APPROXIMATE COST PER UNIT CIF WHOLESALE FOR MASQUE BLUE TUBE IS $5.40; ITS APPROXIMATE RETAIL PRICE WITHOUT DUTY IS $80; THE PROPOSED DUTY IS $1.40 WHICH REPRESENTS A 1.8 PER CENT INCREASE IN THE RETAIL PRICE WITHOUT DUTY, SIMILAR FIGURES FOR LIPSTICK PRODUCE PRICES OF $7.90 COST, $49 RETAIL COST, $2 PROPOSED DUTY AND 4.1 PERCENTAGE INCREASE: FOR PERFUME SPRAY $61.90 COST, $195 RETAIL COST, $15.50 DUTY AND 7.9 PER CENT INCREASE; FOR FACE POWDER $10.80 COST, $75 RETAIL COST, $2.70 DUTY AND 3.6 PER CENT INCREASE; FOR MOISTURE CREAM $169.60 COST, $320 RETAIL COST, $42.40 DUTY AND 13.3 PER CENT INCREASE.
+ THE COSMETICS INDUSTRY IS WIDELY SPREAD WITH RAPIDLY CHANGING PRODUCTS,+ SAID SIR JOHN. MOST ARE IMPORTED. SOME ARE MANUFACTURED HERE. IT HAS NOT BEEN EASY TO DRAFT A DEFINITION
WE OF COSMETICS WHICH IS WHOLLY UNAMBIGUOUS AND WATERTIGHT. HAVE DONE OUR BEST. TO HAVE CONDUCTED CONSULTATIONS IN ADVANCE WOULD NOT HAVE RESOLVED ALL PROBLEMS AND RATHER OBVIOUSLY ENABLED THE TRADE TO STOCK UP.
+THUS BRINGING THIS DUTY INTO EFFECT TODAY MUST BE VIEWED AS A REVENUE PROTECTION MEASURE. CUSTOMS AND EXCISE HAS PREPARED FOR THIS IMPLEMENTATION CAREFULLY AND WILL ASSIST THE TRADE IN THE INEVITABLE PROBLEMS WHICH WILL ARISE. THE SERVICE HAS, DURING 1984. GAINED INVALUABLE EXPERIENCE ON THE APPLICATION OF AD VALOREM DUTIES TO LIQUOR WHICH WILL NOW STAND IT IN GOOD STEAD, HE ADDED.
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