WEDNESDAY, APRIL 17, 1985
POINTING OUT THAT THE EXPECTED YIELD IN 1985-86 FROM THE RE INTRODUCED DUTIES ON COSMETICS AND SOFT DRINKS WAS $310 MILLION, SIR JOHN SAID IT WOULD BE POSSIBLE TO SECURE THE SAME OVERALL BUDGETARY RESULTS BY INCREASES IN DIRECT TAX BUT THESE WOULD BE +QUITE UNINTELLIGENT+ IN PRESENT CIRCUMSTANCES.
+NO ONE LIKES THESE NEW DUTIES. I DO NOT. THERE IS, HOWEVER, NO UNOBJECTIONABLE WAY OF RAISING REVENUE. AND IT MUST BE RAISED IF WE ARE TO DALANCE THE BUDGET.
AGAINST THIS BACKGROUND, SIR JOHN SAID HIS JUDGEMENT ABOUT THE MERITS IN 1985-86 OF A MODERATE INCREASE IN INDIRECT TAXATION SEEMED TO HAVE BEEN BROADLY ACCEPTED THOUGH IMPLEMENTATION WAS ANOTHER MATTER.
+GIVEN FULL EMPLOYMENT AND RISING REAL WAGES MOST MEMBERS AND THE PUBLIC IN GENERAL MAY FIND IT AS HARD AS I TO DO MORE THAN SYMPATHISE WITH THE SOFT DRINK AND COSMETIC LOBBIES, WHO LOUDLY CLAIM UNFAIR DISCRIMINATION.
LIKE OTHER
+ALL TAXES AND DUTIES ARE DISCRIMINATORY. GOVERNMENTS WE ALREADY DISCRIMINATE SELECTIVELY AGAINST ALCOHOL, CIGARETTES, PETROL AND DIESEL OIL, CARS, CINEMA GOERS, SHARE TRANSFERS, HORSE BETTING AND INDEED THE ECONOMICALLY SUCCESSFUL, SIR JOHN SAID.
HE SAID HE DID NOT GIVE CREDENCE TO HEADLINE WINNING EXAGGERATION BUT ADMITTED THAT +HARD CASES ARE BOUND TO ARISE+, +SELECTIVITY WAS DIFFICULT AND +ACCURATE DEFINITIONS WERE ESSENTIAL+.
+BUT AGAIN CLAIMS ON BEHALF OF ONE PARTICULAR POPULAR BEVERAGE THAT ON GROUNDS OF NUTRITIONAL VALUE SOYA BEAN DRINK SHOULD BE GIVEN PREFERENTIAL TAX TREATMENT OVER ITS COMPETITORS COULD LEAD TO THE CONCLUSION THAT ONE POPULAR BRAND OF STOUT WHICH ADVERTISES THAT IS GOOD FOR YOU, SHOULD ALSO BE TAX FREE.
+NOR IS A TAX OF 15 CENTS ON A CARTON DRAMATIC OR LIKELY TO DEPRESS DEMAND FOR LONG. MOREOVER THERE ARE SEVERAL COMPETITIVE SOYA BASED DRINKS, FOR WHICH SIMILAR CLAIMS COULD BE MADE,+ HE NOTED.
SIR JOHN WENT ON TO POINT OUT THAT THE SOFT DRINK MANUFACTURERS, WHILE PROTESTING LOUDLY, HAVE TAKEN THE OPPORTUNITY OF RECOMMENDING THE ADDITON OF 50 PER CENT TO THE TAX, OR 10 CENTS A CAN, THEMSELVES.
+TO THE EXTENT THAT THIS DELAYS A RETURN OF DEMAND THEY HAVE ONLY THEMSELVES TO BLAME. AVAILABILITY OF PARALLEL IMPORTS WILL KEEP PRICES REASONABLE, HE SAID, ADDING THAT BOTTLES OF SOFT DRINKS WERE CHEAPER THAN ALUMINIUM CANS BY MORE THAN THE NEW TAλ AND THE OPTION WAS THERE.
/MOVING ON