XN000022-1996-05-01 — Page 46

1

- 33 -

Dutiable Commodities (Amendment) Bill

Following is a speech by the acting Secretary for the Treasury, Mr Alan Lai, in moving the second reading of the Dutiable Commodities (Amendment) (No. 2) Bill 1996 in the Legislative Council today (Wednesday):

Mr Deputy President,

I move that the Dutiable Commodities (Amendment) (No. 2) Bill be read the second time.

The Bill seeks to increase the specific duty rates on tobacco and fuel by 9 per cent broadly in line with inflation in 1995. This is consistent with our overall budgetary strategy whereby we aim to maintain the yield in real terms from the various sources of revenue to ensure financial stability. In the case of tobacco duty, we also believe that there is a need to increase the duty rates in order to maintain the deterrent effect of the duty on smoking. The impact of the proposed duty increases on inflation is minimal.

We have recently strengthened the resources of the Customs and Excise Department to tackle the problems of cigarette smuggling and illicit activities in the use of diesel oil.

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

End