TNAG-1361-FCO40-1807-Hong-Kong-Hansard-reports-and-minutes-of-the-meetings-of-the-1985 — Page 197

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respect of liquor in 1984. The same logic and equity, could be applied.

considerations,

namely

119.

In respect of other tobacco products I propose to increase the basic duty rate on cigars from $175 a kilogram to $210, on Chinese prepared tobacco from $33 a kilogram to $40 and on smoking tobacco from $140 a kilogram to $170. All these

tobacco increases are effective from this afternoon. Taking

consumer resistance into account I estimate an additional $110

million in revenue yield in 1985-86 as a result of these proposals.

Cosmetics

120.

Next I propose to reintroduce, effective this afternoon, a 25% ad valorem duty on the CIF price for imported, or wholesale price for locally produced, cosmetics.

This duty, which was first introduced in 1947, was abolished in 1959 as a result of smuggling, under-declaration of FOB values and false returns by local manufacturers. I am now persuaded that these problems no longer obtain in present day circumstances. The cosmetics industry is widely spread with rapidly changing products. Most are imported.

Some are manufactured here. It

has not been easy to draft a definition of cosmetics which is

wholly unambiguous and watertight. We have done our best. To

have conducted consultations in advance would not have resolved

all problems; and rather obviously would have enabled the trade to stock up. Thus bringing this duty into effect today must be viewed as a revenue protection measure. Customs and Excise has prepared for this implementation carefully and will assist the trade in the inevitable problems which will arise. The Service

has, during 1984, gained invaluable experience on the application of ad valorem duties to liquor which will now stand it in good stead.

121.

in the

A large number of cosmetic products have a huge mark-up

retail

price. Should the

full

effects of this

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