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WEDNESDAY, MARCH 2, 1994
"AFTER ALL, A MAIN REASON FOR OUR PRESENT HIGH RATE OF TOBACCO DUTY IS TO DISCOURAGE SMOKING, ESPECIALLY AMONG THE YOUNG.
M
UNFORTUNATELY, SIR HAMISH SAID THIS WAS NOT THE REASON FOR THE DIMINISHING RETURNS.
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THE EXPLANATION LIES IN INCREASED SMUGGLING. THERE IS A REAL THAT THE CHEAPER, CONTRABAND CIGARETTES ACTUALLY ENCOURAGE
RISK SMOKING.
"THERE IS ALSO A RISK THAT ANY FURTHER INCREASE IN THE RATE OF DUTY WOULD ONLY LEAD TO A HIGHER LEVEL OF SMUGGLING. I HAVE, THEREFORE, DECIDED TO MAINTAIN TOBACCO DUTY RATES AT THEIR PRESENT LEVEL ON GROUNDS BOTH OF PUBLIC ORDER AND OF HEALTH, HE SAID.
"
SIR HAMISH PROPOSED TO TAKE THE FOLLOWING MEASURES TO TACKLE BOTH PROBLEMS:
SUBJECT TO LEGCO'S APPROVAL, ADDITIONAL RESOURCES WILL BE PROVIDED TO THE CUSTOMS AND EXCISE DEPARTMENT FOR THE ESTABLISHMENT OF A 40-STRONG TASK FORCE ΤΟ TACKLE THE TOBACCO SMUGGLERS. ITS MAIN PRIORITY WILL BE TO STEP UP INVESTIGATIONS AND TO GATHER THE INTELLIGENCE NEEDED ΤΟ ATTACK SMUGGLING SYNDICATES.
A GRANT OF $7.5 MILLION HAVE BEEN APPROVED TO THE HONG KONG COUNCIL ON SMOKING AND HEALTH (COSH) TO BE SPENT ON ANTI- SMOKING CAMPAIGNS AND RESEARCH OVER THE NEXT TWO YEARS. THIS SUM WILL RE IN ADDITION TO THE ANNUAL RECURRENT GRANT OF $4. 1 MILLION PROPOSED FOR COSH IN THE 1994/95 DRAFT ESTIMATES.
"BY HOLDING TOBACCO DUTY AT ITS PRESENT LEVEL, WE SHALL BE
FORGOING THE ADDITIONAL REVENUE WHICH WOULD HAVE BEEN OBTAINED BY AN INFLATION-LINKED ADJUSTMENT OF $185 MILLION IN 1994/95 AND $865 MILLION IN THE PERIOD TO 1997/98, HE ADDED.
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FUEL DUTY RAISED BY 8.5 PER CENT
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THE FINANCIAL SECRETARY, THE HON SIR HAMISH MACLEOD, TODAY (WEDNESDAY) PROPOSED TO INCREASE THE DUTY OF HYDROCARBON OILS BY 8.5%.
IN HIS 1994/95 BUDGET, SIR HAMISH SAID AS LONG AS TRAFFIC CONGESTION SHOWED NO SIGNS OF AN IMPROVEMENT, AND VEHICULAR GROWTH REMAINED UNABATED, ANY BUDGET MEASURE WHICH REDUCED THE FUEL DUTY IN REAL TERMS WOULD ONLY ADD TO THE PRESSURE ON THE ROADS,
"1, THEREFORE, PROPOSE TO INCREASE THE DUTY BY 8.5% ΤΟ KEEP PACE WITH INFLATION," HE SAID.
ON DUTY FOR ALCOHOL DRINKS, SIF HAMISH SAID THE PRESENT STRUCTURE OF DUTY ON ALCOHOL WAS A CONFUSING COCKTAIL OF SPECIFIC AD VALOREM LEVIES.
AND
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