TNAG-1361-FCO40-1807-Hong-Kong-Hansard-reports-and-minutes-of-the-meetings-of-the-1985 — Page 199

G.F. 316

It

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takes into account the growing sophistication of the trade and information obtained through research into relevant legislation and practice overseas.

124. For the purposes of the duty, non-alcoholic beverages will include any liquid which is placed in a sealed container for sale as a beverage such as carbonated or non-carbonated syrup, fruit or milk-based drink, soda, mineral and tonic water, herbal or botanical beverages. There will be excluded from the ambit of the duty concentrate, distilled water, milk, pure fruit

or vegetable juice and soup. The Customs and Excise Service will assist the trade in clarifying application of the duty.

125.

The basic rate of duty on non-alcoholic beverages will

be 60¢ a litre, which comes into effect this afternoon.

Assuming that the duty is passed on in full to the consumer,

about 20 will be added

20¢

be added to the retail price of a can of Coca Cola or Seven-Up and 90¢ to a 1 1/2 litre bottle of Evian Mineral Water (63). I estimate the revenue yield from the reintroduction of this duty to be $210 million in 1985-86.

Duty-free Concession

126.

Sir, the duty free allowance provided by

Commissioner of Customs and Excise to each adult traveller

the

(63) The estimated effects on representative retail prices of arbitrarily

selected brands of non-alcoholic beverages are -

Brand

Approximate retail price without duty

Proposed

%

duty

increase

($)

($)

Coca Cola

1.70

0.20

11.8

Schweppes Cream Soda

2.20

0.20

9.1

Seven-Up

1.80

0.20

11.1

Evian Mineral Water

5.90

0.90

15.3

Laoshan Natural

Mineral Water

1.30

0.16

12.3

Hi-C Chrysanthemum tea

1.30

0.15

11.5

Vitasoy

1.40

0.15

10.7

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