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On fuel, Mr Tsang said there had been an increase in the smuggling and illegal use of diesel oil.
"We have provided resources to the Customs and Excise Department to set up additional investigation and enforcement teams in 1996-97 to tackle the problem."
The situation should improve and it was considered appropriate to increase the duty on petrol and other hydrocarbon oils.
The increases in duties for both tobacco and fuel oil by nine per cent were an amount broadly in line with the rate of inflation, Mr Tsang said.
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More betting tax
It is time to raise the Betting Tax.
The Financial Secretary. Mr Donald Tsang, said there had been no increase in the tax since 1992.
"I consider that it is now appropriate to raise the tax from 11.5 per cent to 12 per.cent for standard bets and 17.5 per cent to 18 per cent for exotic bets."
He said this was a modest increase, and he had asked the Royal Hong Kong Jockey Club to absorb the cost of the increase by reducing its betting commission.
There will be no reduction in the prize money pool, so this should not give any encouragement to the activities of illegal bookmakers.
The increase should take effect from the beginning of the next racing season in September.
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