XN000022-1984-02-29 — Page 29

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WEDNESDAY, FEBRUARY 29, 1984

+THIS WILL RESULT IN A REDUCTION IN DUTY AT THE CHEAPER END OF THE MARKET WITH INCREASES APPLYING PROGRESSIVELY TO THE MORE EXPENSIVE TYPE WINES AND SPIRITS.

THESE CHANGES WILL NOT APPLY TO NON-EUROPEAN TYPE OF WINES AND SPIRITS, INDUSTRIAL TYPE ALCOHOL, CIDER OR BEER.

*DUTY ON THESE CATEGORIES WILL CONTINUE TO BE CHARGED AT THE EXISTING RATE, AS THE PRICE RANGES ARE NOT GREAT, AND THE INHERENT PROBLEMS OF APPLYING AD VALOREM DUTIES IN THESE CASES APPEAR TO OUTWEIGH ANY ADVANTAGES TO BE GAINED, HE EXPLAINED.

SIR JOHN SAID THERE HAD BEEN A DROP IN RELEASES EX-BOND AND A GENERAL INCREASE IN COST INSURANCE AND FRIEGHT VALUES SINCE LAST YEAR.

THE REVENUE FIGURES FOR FISCAL 1983 INDICATED THAT THE YIELD FROM LIQUOR DUTIES WOULD BE SOME $100 MILLION LESS THAN THE APPROVED ESTIMATE OF $492 MILLION.

+ I HAVE ASSUMED SOME RECOVERY IN 1984-85 AND MY ESTIMATE OF REVENUE FROM IMPORTED LIQUOR AT CURRENT RATE IS $436 MILLION, + HE SAID.

SIR JOHN SAID TODAY'S PROPOSAL WOULD RESULT IN THE MORE EXPENSIVE BRANDS OF WINES AND SPIRITS BEING CHARGED A HIGHER DUTY THAN THEIR LESS EXPENSIVE COUNTERPARTS:

* EXPENSIVE WINE

*

CHEAP WINE

INCREASE IN DUTY BY ABOUT $8.80 PER BOTTLE;

DECREASE BY ABOUT $0.50 PER BOTTLE;

* EXPENSIVE WHISKY

* CHEAP WHISKY

* XO BRANDY

* VSOP BRANDY

*

INCREASE BY ABOUT $2.30 PER BOTTLE

DECREASE BY ABOUT $0.60 PER BOTTLE;

INCREASE BY ABOUT $29 PER BOTTLE;

INCREASE BY ABOUT $3.70 PER BOTTLE; AND

+THREE STAR+ BRANDY

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DECREASE. BY ABOUT $2.90 PER BOTTLE.

+RETAIL PRICES WILL, OF COURSE, DEPEND ON THE PRICING POLICY ADOPTED BY THE RETAILERS AND THE TRADE, SIR JOHN SAID.

HE ADDED THAT THESE PROPOSALS SHOULD BRING IN INCREASED REVENUE OF ABOUT $50 MILLION NEXT YEAR SO THAT THE OVERALL YIELD FROM DUTY WOULD AT LEAST REMAIN STABLE IN REAL TERMS,

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