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WEDNESDAY, FEBRUARY 27, 1985
A NOTE EXPLAINED THAT, ASSUMING THAT THESE INCREASES ARE PASSED ON IN FULL TO THE CONSUMER A $9 BOTTLE OF IMPORTED CHINESE-TYPE SPIRIT WOULD INCREASE BY 45 CENTS AND A $8.70 BOTTLE OF LOCAL SPIRITS WOULD INCREASE BY 65 CENTS.
THE THIRD AND FOURTH PROPOSALS FOR INTOXICATING LIQUOR AND METHYL ALCOHOL ARE ALSO MINOR TIDYING-UP EXERCISES, HE SAID, TO INTRODUCE A MEASURE OF CONSISTENCY BETWEEN THE RATES APPLIED TO DIFFERENT TYPES OF LIQUOR.
THEY ARE TO RAISE THE BASIC DUTY RATES FOR ETHYL AND METHYL ALCOHOL RESPECTIVELY TO A UNIFIED BASIC RATE OF $400 A HECTOLITRE EFFECTIVE THIS AFTERNOON. +I ASSUME NO CONSUMER RESISTANCE AND ESTIMATE THE NET ADDITIONAL REVENUE YIELD IN 1985-86 TO BE $2 MILLION,✦ HE SAID.
COST PER PUFF RISES *****
THE PRICE OF PACKS OF 20 CIGARETTES WOULD GO UP FROM 50 TO 70 CENTS EACH UNDER PROPOSED DUTY INCREASES AND SIR JOHN BREMRIDGE WARNED THAT DURING 1985 HE WOULD REVIEW THE MERITS OF IMPOSING A PURE AD VALOREM DUTY ON TOBACCO.
HE SAID THAT FOR FISCAL REASONS ALONE THE DUTY RATES ON IMPORTED TOBACCO HAD BEEN INCREASED FOURFOLD IN 1983. THIS RESULTED IN AN INCREASED CASH DIFFERENTIAL BETWEEN UNMANUFACTURED RAW TOBACCO AND IMPORTED MANUFACTURED CIGARETTES.
+DURING 1984, AND INDEED RECENTLY NUMEROUS REPRESENTATIONS HAVE BEEN MADE TO THE GOVERNMENT BY AND ON BEHALF OF SOME IMPORTERS OF US CIGARETTES CONCERNING THIS DIFFERENTIAL. ALLEGATIONS OF PROTECTIONISM WHICH HAVE BEEN LEVELLED AGAINST THE HONG KONG GOVERNMENT IN THIS REGARD MUST BE TAKEN SERIOUSLY - BUT AGAINST THE BACKGROUND THAT IN 1984 IMPORTED CIGARETTES COMMANDED A 66 PER CENT SHARE OF THE MARKET.
+AFTER CAREFUL CONSIDERATION I PROPOSE THIS YEAR TO INCREASE THE DUTY ON IMPORTED CIGARETTES AND IMPORTED RAW TOBACCO FROM $178 AND $131.40 A KILOGRAM RESPECTIVELY TO $210 AND $170.
+THE INCREASE IN THE DUTY RATE APPLIED TO IMPORTED CIGARETTES COVERS INFLATION SINCE THE LAST INCREASE. THE ACTUAL RETAIL PRICE TO THE CONSUMER SHOULD INCREASE MUCH LESS THAN THE DUTY RATE.
THE PROPOSED
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