XN000022-1990-03-07 — Page 34

WEDNESDAY, MARCH 7, 1990

21

ADDITIONAL REVENUE FROM DUTIABLE COMMODITIES

HON SIR

THE FINANCIAL

THE SECRETARY,

PIERS JACOBS, PROPOSED TO RAISE ADDITIONAL REVENUE FROM DUTIABLE COMMODITIES.

TODAY

YEARS THE REVISED HAD BEEN NOW PROPOSED TO RAISE

IN HIS BUDGET SPEECH, SIR PIERS NOTED THAT FOR SOME DUTIES ON HYDROCARBON OILS, LIQUORS AND TOBACCO

TO KEEP PACE WITH INFLATION AND HE SOLELY ADDITIONAL REVENUE FROM THIS SOURCE.

HYDROCARBON OILS

SIR PIERS PROPOSED TO INCREASE THE DUTY RATE ON HYDROCARBON OILS BY 30 PER CENT, FOR FISCAL AND NOT TRANSPORT REASONS.

THE DUTY ON PETROL WOULD INCREASE FROM $2.75 A LITRE TO $3.58 LITRE, AND ON DIESEL OIL FOR ROAD VEHICLES FROM $1.37 A LITRE TO $1.78 A LITRE.

THE

ADDITIONAL

REVENUE

ARISING

FROM THESE INCREASES WAS

ESTIMATED TO BE $580 MILLION.

THE REFUND ON DIESEL OIL TO THE FRANCHISED BUS COMPANIES REMAIN AT 65 CENTS A LITRE.

WOULD

TAKEN INCREASE

THE COST OF

THREE COMPANIES THE DUTY INCREASE TO ALL TOGETHER WOULD BE ABOUT $50 MILLION. THE EFFECT WOULD BE TO COSTS BY AN AVERAGE OF ABOUT FOUR CENTS A PASSENGER TRIP.

POSSIBILITY PETROL BUT SUITABLE

THE FINANCIAL SECRETARY SAID HE HAD CONSIDERED THE INTRODUCING A DIFFERENTIAL RATE OF DUTY FOR UNLEADED

WAS IMPRACTICABLE AT THE MOMENT BECAUSE OF THE LACK OF FACILITIES AT PETROL STATIONS.

OF THIS

"WHEN THIS SITUATION CHANGES, I SHALL GIVE THE PROPOSAL

THOUGHT.

"CLEARLY, THE BENEFITS FOR THE ENVIRONMENT WOULD

HE SAID.

INTOXICATING LIQUOR AND ALCOHOL

FURTHER

BE WELCOMED."

THE FINANCIAL SECRETARY PROPOSED TO:

AND

RAISE THE SPECIFIC DUTY RATES ON ALL INTOXICATING LIQUORS ALCOHOL BY ABOUT 10 PER CENT TO OFFSET EROSION BY INFLATION;

SPARKLING WINES OTHER SPIRITUOUS

-

BRING THE AD VALOREM RATE ON CHAMPAGNE AND INTO LINE WITH THAT OF BRANDY, WHISKY AND LIQUORS AND TO INCREASE THE RATE ON BOTH CATEGORIES TO 35 PER CENT; AND

/- MERGE THE