TNAG-1361-FCO40-1807-Hong-Kong-Hansard-reports-and-minutes-of-the-meetings-of-the-1985 — Page 195

G.F. 316

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the net additional revenue yield in 1985-86 to be $2 million.

Imported Tobacco

118.

For fiscal reasons alone the duty rates on imported tobacco were increased fourfold in 1983 (59). This resulted in

an increased cash differential between unmanufactured raw tobacco and imported manufactured cigarettes. During 1984 and indeed recently numerous representations have been made to the Government by and on behalf of some importers of US cigarettes concerning this differential. Allegations of protectionism which have been levelled against the Hong Kong Government in this regard must be taken seriously but against the background that in 1984 imported cigarettes commanded a 66% share of the

market. After careful consideration I propose this year to increase the duty on imported cigarettes and imported raw tobacco from $178 and $131.40 a kilogram respectively to $210 and $170. The increase in the duty rate applied to imported cigarettes covers inflation since the last increase. The actual

retail

price

to

the

consumer

should

(59) 1983 B.S., paragraph 95.

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