XN000022-1987-11-25 — Page 5

4

WEDNESDAY, NOVEMBER 25, 1987

MAJOR OVERHAUL OF TOBACCO DUTY STRUCTURE

THE FINANCIAL SECRETARY,

JACOBS, TODAY (WEDNESDAY) ANNOUNCED A MAJOR OVERHAUL OF THE CURRENT TOBACCO DUTY STRUCTURE.

MR PIERS

DUTY ON CIGARETTES WILL NO LONGER BE

IT

ON WILL BE LEVIED

A INSTEAD,

"PER

ΤΟ APPLIED ONLY

THOSE CIGARETTES WHICH WHETHER THEY MARKET,

ARE LOCALLY MADE

ARE

OR

WITH IMMEDIATE EFFECT, LEVIED ON A WEIGHT BASIS. CIGARETTE" BASIS AND DESTINED FOR THE LOCAL IMPORTED.

A PUBLIC REVENUE MR JACOBS TOLD THE LEGISLATIVE COUNCIL THAT

HAD BEEN SIGNED, AND 118 PROTECTION ORDER PROVIDING FOR THE CHANGE EXPLAINED THAT THE KEY AIMS WERE SIMPLICITY AND EVENHANDEDNESS.

IT WILL BE "THE NEW SYSTEM WILL HAVE A NUMBER OF ADVANTAGES.

A DRAWBACK SYSTEM. EASY TO ADMINISTER. IT WILL OBVIATE THE NEED FOR AND

WITH MANUFACTURING WILL REMOVE PROBLEMS ASSOCIATED ALLOWANCE AND WEIGHT ADJUSTMENTS.

ין' 1

"

LOSS

REMOVE

AND IMPORTED CIGARETTES, BY OUR TRADING PARTNERS,

*H

MR

IN ADDITION, IT WILL PROVIDE US WITH AN OPPORTUNITY TO THE DUTY DIFFERENTIAL BETWEEN LOCALLY MADE

BE WELCOMED AND THIS WILL NO DOUBT JACOBS SAID.

TO BE MR JACOBS CIGARETTES FOR BOTH

ON THE BASIS THAT THE CURRENT LEVEL OF REVENUE YIELD IS MAINTAINED AND ASSUMING NO CHANGE IN CONSUMPTION PATTERN, ANNOUNCED A UNIFORM DUTY RATE OF $165 PRR 1,000 LOCAL AND IMPORTED BRANDS.

DUTIES ON OTHER TOBACCO PRODUCTS, SUCH WILL CONTINUE TO BE LEVIED ACCORDING TO WEIGHT, DIVERSITY IN SIZE AND QUALITY.

MR JACOBS STRESSED THAT REGARDS AS "REVENUE NEUTRAL" RELEASED TO THE LOCAL MARKET.

AS CIGARS AND SNUFF, GIVEN THEIR IMMENSE

INTENDED TO BE ON PRODUCTS

THE DUTY RATE WAS THE

DUTY OVERALL

PAID

RESULT

IN

A

YEAR

THIS CHANGE 19 LIKELY TO "IN FACT, HOWEVER, REDUCTION IN THE DUTY REVENUE COLLECTED IN THE CURRENT FINANCIAL FIGURE REPRESENTS THE BY SOME $290 MILLION. THE BULK OF THIS THAT, ON THE CURRENT SYSTEM, WOULD HAVE BEEN COLLECTED IN 1987-88

IN RESPECT OF EXPORTED LATER PAID BACK TO MANUFACTURERS IN 1988-89

CIGARETTES.

"IN THE NEXT FINANCIAL YEAR REVENUE WILL NOT PRE-PAYMENTS AND DRAWBACKS, AND SHOULD REVERT TO A THAT EXPERIENCED IN PREVIOUS YEARS, MR JACOBS SAID.

DUTY BUT

BE DISTORTED BY LEVEL SIMILAR TO

/HE SAID