WEDNESDAY, FEBRUARY 25, 1987
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MR JACOBS SAID THIS ADDITIONAL REVENUE, HOWEVER, WOULD BE MORE THAN OFFSET BY TAX CONCESSIONS ESTIMATED AT $690 MILLION IN 1987-88 AND $1.1 BILLION IN A FULL YEAR.
ON IMPORTED HYDROCARBON OIL, HE PROPOSED TO INCREASE THE DUTY RATE ON MOTOR SPIRIT FROM $2.30 TO $2.40 Á LITRE AND ON DIESEL OIL FOR ROAD VEHICLES FROM $1.15 TO $1.20 A LITRE.
WHILE RELUCTANT TO ADD TO THE BURDEN OF CONSUMERS DUE TO RECENT INCREASES IN FUEL PRICES, MR JACOBS SAID THERE WAS A NEED TO MAINTAIN THE REAL VALUE OF THE YIELD FROM THIS PARTICULAR TAX SOURCE.
IF THE FULL INCREASE WAS PASSED ON TO CONSUMERS, PETROL PRICES WOULD RISE BY ABOUT 2 PER CENT AND DIESEL PRICES BY ABOUT 1.5 PER CENT.
+THE REFUND ON DIESEL OIL TO THE FRANCHISED BUS COMPANIES WILL REMAIN AT 65 CENTS A LITRE, MR JACOBS CONTINUED.
+THE COST OF THE DUTY INCREASE TO ALL THESE COMPANIES TAKEN TOGETHER WILL BE $6 MILLION. THE EFFECT, IF ANY, ON BUS FARES SHOULD BE MINIMAL.
ADDITIONAL REVENUE FROM THE INCREASED DUTY RATES ON IMPORTED HYDROCARBON OIL WAS ESTIMATED AT $60 MILLION IN 1987-88.
MR JACOBS THEN MADE TWO PROPOSALS RELATING TO INTOXICATING LIQUOR.
THE FIRST PROPOSAL WAS INCREASES VARYING FROM 6 PER CENT TO 13 PER CENT IN SPECIFIC DUTY ELEMENTS TO RESTORE THEIR REAL VALUES SINCE THEY WERE LAST REVISED. SOME HAD NOT BEEN REVISED SINCE 1984.
+THE AD VALOREM RATES WILL REMAIN UNCHANGED, HE ADDED.
+SECOND, PROPOSE A MINOR STRUCTURAL ADJUSTMENT TO REDUCE THE NUMBER OF DUTY RATES.+
DUTY RATES ON CIDER AND PERRY WILL BE INCREASED TO $1.28 PER LITRE BY RATHER LESS THAN THE RATE OF INFLATION TO BRING
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THEM INTO LINE WITH THE BASIC DUTY RATE ON BEER.
MR JACOBS ALSO PROPOSED TO INCREASE THE BASIC RATES FOR IMPORTED ETHYL ALCOHOL AND METHYL ALCOHOL FROM $4 PER LITRE TO $4.30 PER LITAE.
+THIS WILL MAINTAIN THE RATES IN REAL TERMS AND KEEP THEM IN LINE WITH THE RATES FOR NON-EUROPEAN TYPE SPIRITS, HE SAID.
/AELUMING NO .....................