XN000022-1991-05-15 — Page 2

WEDNESDAY, MAY 15, 1991

1

FS'S MOTIONS UNDER DUTIABLE COMMODITIES ORDINANCE PASSED

PASSED

TWO

THE LEGISLATIVE COUNCIL TODAY (WEDNESDAY} RESOLUTIONS MOVED BY THE FINANCIAL SECRETARY, THE HON SIR PIERS JACOBS UNDER THE DUTIABLE COMMODITIES ORDINANCE.

VARIOUS

BUDGET

INCLUDING

THE FIRST RESOLUTION SOUGHT TO IMPLEMENT THE PROPOSALS IN RELATION TO THE DUTIABLE COMMODITIES ORDINANCE THE INCREASE IN THE RATES OF DUTY ON TOBACCO PRODUCTS OF 200 PER CENT.

MAY THAT

THE SECOND RESOLUTION SOUGHT TO REDUCE THE DUTY RATES FROM 18 SO THAT THEY WOULD BE JUST 100 PER CENT HIGHER THAN THE RATES

HIS BUDGET DELIVERED WERE IN FORCE BEFORE THE FINANCIAL SECRETARY SPEECH ON MARCH 6.

TWO THE FINANCIAL SECRETARY POINTED OUT THAT THE EFFECT OF THE RESOLUTIONS TAKEN TOGETHER WAS THAT THE DUTY RATES ON TOBACCO PRODUCTS BETWEEN MARCH 6 AND MAY 18 WOULD BE 200 PER CENT HIGHER THAN THE RATES DUTY THAT WERE IN FORCE BEFORE MARCH 6. THEREAFTER, THE INCREASE IN RATES WOULD BE REDUCED TO 100 PER CENT HIGHER THAN THE RATES THAT WERE IN FORCE BEFORE MARCH 6.

MY BECAUSE

"THE REASON FOR DEALING WITH THE MATTER IN THIS WAY AND FOR NOT WITHDRAWING THE ORIGINAL RESOLUTION ALTOGETHER IS SIMPLY TO WITHDRAW THAT RESOLUTION WOULD RESULT IN HAVING TO REFUND DUTY PAID BY TOBACCO WHOLESALERS WHO PASSED ON THE INCREASE TO BUT THE REFUND WOULD NOT REACH THE CONSUMERS.

"CLEARLY THAT

WOULD BE UNFAIR AND IT WOULD CONCERN OF MEMBERS REGARDING THE CONSUMER PRICE FINANCIAL SECRETARY ADDING THAT THAT CONCERN WAS REDUCING THE DUTY RATES FOR THE FUTURE.

THE CONSUMERS,

T

NOT INDEX, SAID ADDRESSED

ADDRESS

THE

THE

BY

HIS

THAT

FORCE

A

SPEAKING AT THE MOTION TO REDUCE THE TOBACCO DUTY RATE SO THEY WOULD STAND AT 100 PER CENT MORE THAN THE OLD DUTY RATE IN BEFORE THE BUDGET, THE FINANCIAL SECRETARY SAID: "WE ARE FACED WITH CONSIDERABLE DILEMMA."

T

WAS

THE

SMOKING,

DUTY ON SIR PIERS POINTED OUT THAT THE ORIGINAL INCREASED IN

HEALTH GROUNDS TOBACCO PRODUCTS OF 200 PER CENT INTRODUCED ON DESIGNED TO HAVE AN IMMEDIATE AND DRAMATIC IMPACT ON SMOKING AND

STATED

WAS TO REDUCE THE CLEARLY

INTENTION PARTICULARLY AMONGST YOUNG PEOPLE.

INCIDENCE

OF

"THE INDICATIONS

ARE THAT THE STRATEGY 19

STARTING

RESULTS,

WITH MUCH ANECDOTAL EVIDENCE OF SMOKERS HAVING CUT TOBACCO CONSUMPTION," HE SAID.

TO SHOW DOWN ON

DUTY

HE REMINDED MEMBERS THAT WHEN A 300 PER CENT INCREASED IN WAS INTRODUCED IN 1983, DEMAND FOR TOBACCO FELL BY 33 PER CENT, AND 40 PER CENT FOR PEOPLE IN THE 15-19 YEAR AGE GROUP.

/"THUS, WE