XN000022-1991-04-17 — Page 16

WEDNESDAY, APRIL 17, 1991

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"IN THE PAST YEAR, DUTY ON CHAMPAGNE, SPIRITS AND HIGH-VALUE CARS BROUGHT IN $1.6 BILLION.

"THE TOP 140 BUSINESSES, THAT IS, 0.1 PER CENT OF THE TOTAL NUMBER IN HONG KONG, BROUGHT IN OVER A THIRD OF ALL PROFITS TAX PAID BY CORPORATIONS, HE SAID.

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IN THE LIGHT OF THE PROVISION MADE FOR THE LESS WELL-OFF MEMBERS OF OUR COMMUNITY SUBSIDISED PUBLIC HOUSING, MEDICAL CARE AND EDUCATION, FOR EXAMPLE - AND OF THE SERVICES PROVIDED FOR ALL MEMBERS OF THE COMMUNITY, THE FINANCIAL SECRETARY SAID THERE COULD BE NO DOUBT THAT THERE WAS IN PRACTICE A SUBSTANTIAL REDISTRIBUTION OF WEALTH FROM RICH TO POOR.

PROPOSED DUTY RATE OF CHINESE TOBACCO TO BE REDUCED: FS

THE

J

THE

NOT

THE THE

FINANCIAL SECRETARY THE HON SIR PIERS JACOBS SAID IN LEGISLATIVE COUNCIL TODAY (WEDNESDAY) THAT WHILE HE WOULD COMPROMISE ON HEALTH GROUNDS, HE IS PREPARED TO AGAIN RESPOND TO APPEALS OF CERTAIN LEGCO MEMBERS AND FOR THE TIME BEING TO RESIST POSSIBLE TRADE OBJECTIONS TO THE CONTINUED PREFERENTIAL TREATMENT GIVEN TO CHINESE TOBACCO.

ACCORDINGLY, HE

THAT

INTENDED TO REDUCE HIS ORIGINAL PROPOSAL BY APPLYING THE SAME INCREASE IN DUTY RATE AS THAT FOR CIGARETTES, WAS, 200 PER CENT.

THE DUTY WOULD BE ADJUSTED FROM $870 TO $180 PER KILOGRAM.

SPEAKING AT THE CONCLUSION OF THE RESUMED BUDGET, DEBATE SIR PIERS SAID THE CHANGE WOULD TAKE EFFECT UNDER A REVENUE PROTECTION ORDER FROM MIDNIGHT TONIGHT.

SOME LEGCO MEMBERS HAD ARGUED THAT THE COMBINED EFFECT OF THE BUDGET DECISION, ON TRADE-RELATED GROUNDS, TO RFMOVE THE PRESENT CONCESS LON IN FAVOUR OF CHINESE MANUFACTURED TOBACCO AFFECTED A VERY SMALL GROUP OF OLD PEOPLE.

"AS I REACH RETIREMENT AGE, I WOULD BE THE LAST PERSON TO WISH THAT THE ELDERLY SHOULD SUFFER PARTICULAR HARDSHIP FROM TAIS TAX INCREASE.

"BUT AT THE SAME TIME, I AM CONCERNED THAT OLD PEOPLE, 110 ARR PARTICULARLY VULNERABLE ΤΟ SMOKING-RELATFD DISEASES, SHOULD NOT CONTINUE TO BE ENCOURAGED TO USE THIS PARTICULAR PRODUCT, HE SAID.

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HE ALSO SAID THE COST OF A PACKET OF CIGARETTES HAD NOW BEEN PUSHED UP TO AROUND $20 THE PSYCHOLOGICAL BARRIER THE GOVERNMENT WAS TRYING TO BREAK.

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"THE

FACT THAT SOME COST $22 TO $24 A PACKET JUST MAKES THIS BLUNT WEAPON AGAINST SMOKING-RELATED DISEASES THAT MUCH SHARPER.

/"IF PEOPLE