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No change to alcohol duty
There will be no change to the alcohol duty system as duty revenue from alcoholic beverages has gradually picked up, the Financial Secretary, Mr Donald Tsang, told the Legislative Council today (Wednesday).
A new simple ad valorem duty system on alcoholic beverages was introduced in April 1994.
"The new system has benefited ordinary consumers through the effects of greater competition, especially at the lower end of the market."
There was a drop in duty revenue immediately after the introduction of the new system, as most products enjoyed a duty reduction.
"But I note that the situation has changed, and duty revenue from alcoholic beverages has gradually picked up. I do not propose any change to the duty system," he said.
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Tobacco, fuel duties rise by 9 per cent
A proposal by the Financial Secretary, Mr Donald Tsang, to increase duties levied on tobacco and fuel, both by nine per cent, came into immediate effect today (Wednesday) under a Public Revenue Protection Order issued.
The anti-cigarette smuggling task force established in the Customs and Excise Department in April 1994 had proved to be extremely effective in tackling the problem of cigarette smuggling, Mr Tsang said.
There had been a substantial increase in seizures of contraband cigarettes, and the black market price of cigarettes had continued to increase.
"These are sure signs that we are hurting the smugglers at current rates of duty." Mr Tsang said.