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We estimate that the cost of these concessions will amount to $20 million in 1995-96 and $100 million in the period up to 1998-99.

These proposals will help to relieve the tax burden on smaller estates at a relatively modest cost. I hope that Members will be able to support them.

End/Wednesday, May 3, 1995

Dutiable Commodities (Amendment) Bill 1995

Following is the speech by the Secretary for the Treasury, Mr K C Kwong, in moving the second reading of the Dutiable Commodities (Amendment) Bill 1995 in the Legislative Council today (Wednesday):

Mr President,

I move that the Dutiable Commodities (Amendment) Bill 1995 be read the second time.

The Bill before Members seeks to increase the specific duty rates on tobacco and hydrocarbon oils by 8%, in line with inflation in 1994. This is consistent with our overall budgetary strategy whereby we aim to maintain the revenue yield in real terms from the various sources of revenue to ensure financial stability.

In the particular case of tobacco duty, we also believe that there is a need to increase duty rate in order to maintain the deterrent effect of the duty on smoking. We will work together with the Customs and Excise Department to ensure that the success of the Task Force in tackling cigarette smuggling is maintained in the future.

We estimate that these proposals will generate additional revenue of $560 million in 1995-96 and $2.6 billion in the period up to 1998-99.

Mr President, with these remarks, I commend the Bill to Members.

End/Wednesday, May 3, 1995