XN000022-1985-02-27 — Page 18

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WEDNESDAY, FEBRUARY 27, 1985

THE BASIC RATE OF DUTY ON NON-ALCOHOLIC BEVERAGES WILL BE 60 CENTS A LITRE WHICH COMES INTO EFFECT THIS AFTERNOON (WEDNESDAY). ASSUMING THAT THIS DUTY IS PASSED ON IN FULL TO THE CONSUMER ABOUT 20 CENTS WILL BE ADDED TO THE RETAIL PRICE OF A CAN OF COCA COLA OR SEVEN-UP AND 90 CENTS TO A ONE-AND- A-HALF-LITRE BOTTLE OF EVIAN MINERAL WATER. THE ESTIMATED REVENUE YIELD FROM THE REINTRODUCTION OF THE DUTY WILL BE $210 MILLION IN 1985-86.

SIR JOHN SAID THAT PRIOR TO 1973 A DUTY WAS IMPOSED ON TABLE WATERS BUT IT WAS REMOVED MAINLY BECAUSE THE YIELD OF $10 MILLION WAS CONSIDERED INSIGNIFICANT AND ALSO BECAUSE OF INCREASING ENFORCEMENT AND DEFINITION DIFFICULTIES AS A RESULT OF A WIDER RANGE OF SOFT DRINKS COMING ON THE MARKET.

+THE DUTIES ON BEER WHICH COME INTO EFFECT TODAY RANGE BETWEEN 20 AND 30 PER CENT OF THE RETAIL PRICE. IN RESPECT TO SOFT DRINKS THE RATE WHICH WILL PROPOSE WILL AVERAGE HALF THIS INCIDENCE.

HE SAID IT WAS IMPORTANT THAT THE REVENUE PRODUCING BASE SHOULD BE BROADENED WHEREVER POSSIBLE AND THE POTENTIAL YIELD WAS NOW LARGE. ALSO THE LEGISLATIVE DEFINITION NOW PROPOSED FOR NON-ALCOHOLIC BEVERAGES WAS WIDER THAN THAT APPLICABLE TO THE TABLE WATER DUTY REPEALED IN 1973.

HE EXPLAINED THAT FOR THE PURPOSE OF THE DUTY, NON-ALCOHOLIC BEVERAGES WOULD INCLUDE ANY LIQUID PLACED IN A SEALED CONTAINER FOR SALE AS A BEVERAGE, SUCH AS CARBONATED OR NON-CARBONATED SYRUP, FRUIT OR MILK-BASED DRINK, SODA, MINERAL AND TONIC WATER, HERBAL OR BOTANICAL BEVERAGES. ÉXCLUDED WOULD BE CONCENTRATE, DISTILLED WATER, MILK, PURE FRUIT OR VEGETABLE JUICE AND SOUP.

SIR JOHN'S NEWS FOR DRINKERS

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BUDGET PROPOSALS ANNOUNCED TODAY (WEDNESDAY) ADDED 23 CENTS TO 31 CENTS TO THE RETAIL PRICE OF A CAN OF BEER, SAID SIR JOHN,

+

ANNOUNCING HIS PROPOSALS RELATING TO BEER, HE SAID THE INCREASE IN THE BASIC RATE FOR BOTH LOCAL AND IMPORTED BEER WOULD GO UP FROM $66 AND $81.40 A HECTOLITRE RESPECTIVELY TO A UNIFIED BASIC RATE OF $120. +THE EXISTING DIFFERENTIAL IN THE DUTY RATE OF 23.3 PER CENT BETWEEN LOCALLY MANUFACTURED AND IMPORTED BEER WILL THEREBY BE ELIMINATED.+

INCREASES IN THE DUTY WILL RANGE FROM 47 PER CENT TO 82 PER CENT, DEPENDING ON THE ORIGINAL GRAVITY, HE SAID. THE ESTIMATED ADDITIONAL REVENUE YIELD IN 1985-86 WILL BE $125 MILLION.

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