XN000022-1975-12-03 — Page 2

VEDNESDAY, DECEMBER 3, 1975

NEW RATES OF DUTY ON LIQUORS AND TOBACCO REVISED REGISTRATION TAX FOR CARS EFFECTIVE TODAY

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NEW RATES OF FIRST REGISTRATION TAX FOR MOTOR VEHICLES AND OF DUTIES ON SPIRITUOUS LIQUORS AND MANUFACTURED TOBACCO FROM COMMONWEALTH COUNTRIES WERE ANNOUNCED BY THE FINANCIAL SECRETARY THE HON. PHILIP HADDON-CAVE, IN THE LEGISLATIVE COUNCIL TODAY (JEDNESDAY).

THE NEW RATES OF FIRST REGISTRATION TAX FROM 6 P.M. TODAY. THE NEW RATES OF DUTY, MADE IN AN ORDER UNDER

WILL COME INTO EFFECT THE PUBLIC REVENUE PROTECTION ORDINANCE AND SIGNED BY THE ACTING GOVERNOR THIS MORNING, CAME INTO EFFECT AT 3 P.M. TODAY.

IN MAKING THE ANNOUNCEMENT, THE FINANCIAL SECRETARY SAID THAT THE GOVERNMENT'S ACTION WAS TAKEN +TO HONOUR THE UNDERTAKING GIVEN TO THE UNITED STATES GOVERNMENT SHOULD HONG KONG BE DESIGNATED AS A BENEFICIARY OF THE U.S. GENERALISED SCHEME OF PREFERENCES.+

THE UNDERTAKING, GIVEN IN MAY THIS YEAR, WAS +THAT THE HONG KONG GOVERNMENT WOULD TAKE, BEFORE JANUARY 1, 1976, BEING THE STARTING DATE FOR THE SCHEME, THE NECESSARY LÉGISLATIVE STEPS TO ELIMINATE ALL TAX OR DUTY PREFERENCES IN FAVOUR OF DEVELOPED COUNTRIES.+

HE NOTED THAT SOME 25 PER CENT OF HONG KONG'S EXPORTS TO THE UNITED STATES, ON THE PRESENT PATTERN OF TRADE, WOULD QUALIFY FOR PREFERENTIAL TREATMENT.

+SO HAD WE BEEN LEFT OUT OF THE SCHEME WE WOULD HAVE BEEN QUITE SERIOUSLY DISCRIMINATED AGAINST IN FAVOUR OF OUR COMPETITORS,+ HE SAID.

HE ADDED THAT THE ECONOMIES OF OUR COMPETITORS WOULD HAVE BENEFITED FURTHER AT OUR EXPENSE TO THE EXTENT THAT. THE PREFERENCES AVAILABLE UNDER THE SCHEME ASSISTED IN THE DIVERSIFICATION OF THEIR INDUSTRIAL INVESTMENT,

/THE NEW SCHEDULE