TNAG-1361-FCO40-1807-Hong-Kong-Hansard-reports-and-minutes-of-the-meetings-of-the-1985 — Page 191

113.

SECRET 高度機密

I do not intend to revise the current refund on diesel oil to the bus companies. It will remain at 65¢ a litre. The increased duty will cost the franchised bus companies about $11.1 million in a full year.

Since the effect will be to

increase costs by an average of about one half of 16 a passenger, it should have little or no effect on fares. These

two increases are effective from this afternoon. I estimate that the additional yield in 1985-86 will be about $110 million.

Intoxicating Liquor

114.

In 1984 a new basis of levying duty on European type wines and spirits was introduced by lowering the specific rates and imposing a uniform ad valorem rate of 20% (52). No change is proposed this year. There have been far greater reductions in sales of brandy and whisky than expected. This duty is levied purely for fiscal reasons. There is no point in raising taxation if lower revenue results.

115. I have four new proposals. The first concerns beer. I propose to increase the basic rate for both local and imported beer from $66 and $81.40 a hectolitre respectively to a unified basic rate of $120. The existing differential in the duty rate of 23.3% between locally manufactured and

and imported beer

beer will thereby be eliminated. Increases in the duty will range from 47%

(52) 1984 B.S. paragraph 107.

G.F. 316

UNCLASSIFE

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