NEW ALCOHOL DUTY SYSTEM FAIR
WEDNESDAY, MARCH 30, 1994
THE NEW ALCOHOL DUTY SYSTEM COMMENDS ITSELF BECAUSE OF ITS GREATER DEGREE OF FAIRNESS, INCLUDING A CLEARER COMPATIBILITY WITH THE GATT, AND THE BENEFITS IT BRINGS TO THE AVERAGE CONSUMER, THE FINANCIAL SECRETARY, THE HON SIR HAMISH MACLEOD, SAID TODAY (WEDNEDAY).
CONCLUDING THE BUDGET DEBATE IN THE LEGISLATIVE COUNCIL, SIR HAMISH ASSURED LEGISLATORS THAT HE FULLY RECOGNISED THE ADMINISTRATIVE PROBLEMS INHERENT IN A FULL AD VALOREM SYSTEM.
"FOR THIS REASON, I HAVE ALREADY ASKED THE CUSTOMS AND EXCISE DEPARTMENT ΤΟ CLOSELY MONITOR ANY ATTEMPT TO AVOID PAYING THE APPROPRIATE DUTY.
"I UNDERSTAND THAT THERE ARE ALREADY EAGER VOLUNTEERS FOR THE ARDUOUS DUTY OF CARRYING OUT FIELD AUDITS IN THE VINEYARDS OF FRANCE, AUSTRALIA AND CALIFORNIA," HE SAID.
IN INTRODUCING A STRAIGHT AD VALOREM DUTY SYSTEM FOR ALCOHOLIC DRINKS, SIR HAMISH SAID ONE OF HIS OBJECTIVES WAS TO AMEND THE PREVIOUS SYSTEM UNDER WHICH CHEAPER PRODUCTS WERE SUBJECT TO A HEAVIER OF DUTY RELATIVE TO THEIR COST, COMPARED WITH MORE EXPENSIVE PRODUCTS THE SAME TYPE.
"IN SHORT, I HAVE AIMED TO DESIGN A FAIRER SYSTEM."
OVER THE
HE SAID THERE WAS SOME UNDERSTANDABLE CONFUSION PRECISE EFFECT OF THE DUTY CHANGES ON RETAIL PRICES, AND RETAILERS WOULD NOT NECESSARILY ADJUST PRICES IN UNIFORM WAYS.
USING WINE TO ILLUSTRATE THE EFFECTS OF THE NEW SYSTEM, HE SAID FOLLOWING
PRICE THE PROPOSED CHANGES, PRODUCTS WITH AN EXPORT THE A
LOCAL THAN $50
LITRE, WHICH ACCOUNTED FOR SOME 89% OF CONSUMPTION IN 1993, WOULD PAY MUCH LESS IN DUTY.
LESS
WINE
"I REPEAT, SOME 89% OF THE WINE SOLD IN HONG KONG WILL PAY LESS
DUTY."
THE DUTY FOR THE NINE BEST-SELLING BRANDS IN THIS PRICE RANGE, REDUCTION
PRODUCTS RANGES FROM $21 TO $29 A LITRE. THESE NINE BEING SOLD BEFORE THE INTRODUCTION OF THE NEW DUTY SYSTEM AT A PRICE OF ABOUT $70 TO $115 A LITRE.
WERE
RETAIL
POINT
HE SAID PRODUCTS WHICH COST MORE THAN $50 A LITRE AT THE OF EXPORTATION WOULD BE SUBJECT TO HIGHER DUTY UNDER THE NEW SYSTEM.
ΤΟ
SERVE
POPULAR AS AN ILLUSTRATION, TWO OF THE MORE AT AROUND
$9 MORE RETAILING
$200 A LITRE WILL BE PAYING ABOUT ALCOHOL DUTY,
BRANDS
IN
WINES IN THE TOP PRICE RANGE, SONE RETAILING AT A FEW DOLLARS A BOTTLE, WILL BE HARDER HIT.
/BUT THE
THOUSAND
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