I. F 116
SECRET A** 高度機密
- 4
بھر
is
intended
As I have indicated, the
to be
revenue
neutral
rate
I propose
as
regards
the
the local
overall duty paid on products released to market. In fact, however, this change is likely to collected result in a reduction in the duty revenue
in
revenue a
loss.
the current financial year by some $290 million
by some (to $815 million). However, this figure of $290 million The bulk of this figure is not represents the duty that, on the current system, would have been collected
later paid back exported
in
but 1987-88
to
manufacturers in
1988-89 in
respect
cigarettes.
of
The reduction is a once-for-all effect.
It results from technical adjustments which
in
introducing
a new
financial
revenue year
are made
the duty
next system. will not be distorted by
In
drawbacks, and
prepayments
and should revert to a
level similar to that experienced in previous years.
10.
сар
next
X
a -future If I had left the change until
meant that the effects budget, it would merely have of any revenue distortion would mostly be
felt in
Introducing
1988-89 instead of in this financial year. the changes now will have the advantage of confining all the distortion within this financial year.
will enable us
1988-89. I
This
new to operate the
should
stress again
the nature
system throughout
of the
does not
represent
a gift
to
the
that would be due to
distortion. It manufacturers. It simply represents the earlier than usual repayment of money
to them
anyway in respect of tobacco products exported from Hong Kong.
I
of
Questions may be
raised on the effect
on differential
local
the removal of the manufacturers. Although it is difficult to make
detailed assessment, it is
is perhaps useful
a
to note
SECRET ŠEZ
高度機密
No comments yet.
Private notes are available after approval.