XN000022-1994-03-02 — Page 43

WEDNESDAY, MARCH 2, 1994

31

"IT IS ALSO OPEN TO CRITICISM AS REGRESSIVE, BECAUSE THE OVERALL DUTY REPRESENTS A LOWER PERCENTAGE OF THE TOTAL COST OF AN EXPENSIVE PRODUCT THAN OF A CHEAPER PRODUCT OF THE SAME TYPE, HE ADDED.

11

SIR HAMISH PROPOSED TO REFORM THESE ARRANGEMENTS BY INTRODUCING A SIMPLE AD VALOREM SYSTEM. THIS WILL APPLY DIFFERENT RATES TO DIFFERENT PRODUCTS, EXCEPT FOR METHYL ALCOHOL, ON THE BASIS OF THREE TIERS DEFINED BROADLY ACCORDINGLY TO ALCOHOLIC STRENGTH, AS FOLLOWS:

* LIQUOR WITH AN ALCOHOLIC CONTENT ABOVE 30% WILL PAY A 100%

DUTY RATE.

*

GRAPE PRODUCTS WITH AN ALCOHOLIC CONTENT OF 30% OR BELOW WILL PAY A 90% RATE.

*

NON-GRAPE ALCOHOLIC BEVERAGES AND ALCOHOL PRODUCTS WITH AN ALCOHOLIC CONTENT OF NO MORE THAN 30% WILL PAY A 30% RATE.

SIR HAMISH SAID THE NEW SYSTEM WAS DESIGNED ΤΟ BE NEUTRAL IN ITS IMPACT IN PRESENT MARKET CONDITIONS.

REVENUE

HE SAID: "IT IS A REFORM MEASURE, NOT A REVENUE RAISING DEVICE. ITS IMPACT ON INDIVIDUAL PRODUCTS WILL, HOWEVER, VARY.

"BROADLY SPEAKING, PRODUCTS AT THE LOWER END OF WHICH HITHERTO HAVE BEEN SUBJECT TO A HIGH RATE OF DUTY THEIR COST, WILL BENEFIT AS A RESULT OF A REDUCTION PAYABLE."

THE MARKET, RELATIVE TO IN THE DUTY

RATES RELIEF MEASURE PROPOSED

HAMISH MACLEOD,

THE FINANCIAL SECRETARY, THE HON SIR PROPOSED TO INTRODUCF A 20% CAP ON INCREASES IN RATES FOR 1994/95 1995/96.

HAS

AND

TODAY

DELIVERING HIS 1994/95 BUDGET IN THE LEGISLATIVE COUNCIL (WENDESDAY), SIR HAMISH SAID A ROUTINE CONDUCTED IN 1993/94 AND WOULD COME INTO EFFECT ON APRIL 1, THIS YEAR. REVALUATION OF RATES WAS

THE AVERAGE INCREASE IN RATEABLE VALUES WILL BE ABOUT 34% DOMESTIC PROPERTIES AND 32% FOR NON-DOMESTIC PROPERTIES, HE NOTED.

AS

A RESULT OF THE PROPOSED CAP, SIR HAMISH SAID THE INDIVIDUAL WILL BE ASKED TO PAY IN 1994/95 WILL BE NO 20% ABOVE WHAT WAS PAID IN 1993/94.

FOR

THE MAXIMUM MORE THAN

SIMILARLY, THE MAXIMUM PAYMENT IN 1995/96 WILL BE NO MORE 20% ABOVE THE AMOUNT PAYABLE IN 1994/95.

J

THAN

THIS RELIEF WILL APPLY TO AROUT 80% OF PROPERTIES IN

1994/95.

FOR 1995/96, OVER 20% OF PROPERTIES WILL CONTINUE TO BENEFIT FROM THIS RELIEF, HE SAID.

申

/WITH THE