TNAG-1609-FCO40-22131-Minutes-and-Hansards-of-the-Legislative-Council-of-Hong-Kong-1987 — Page 56

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per cent

under

- 5

the

that over 80 of locally made cigarettes are exported and thus are currently eligible for drawback of duties. all regime duty new Additionally, manufacturers will gain the benefit of avoiding the need to prepay duty, and then in due course to apply for drawback of duty, on products destined for export. Furthermore, the rate of differential has been reduced has on a number of over the

and Government years,

the eliminating of intention occasions

has been differential altogether.

stated

its

The local

tråde

warned that Government could not assure them forever the relative benefits that they have enjoyed in the

past.

12.

As regards the effect on cigarette retail prices, I expect it to vary between brands depending Heavier on their current tobacco weight contents.

will attract less duty than than average cigarettes will before. Lighter than average cigarettes will attact

There will be winners"

'winners" and more duty than before.

"losers" amongst both imported and locally manufactured

As regards actual

brands.

be up to

retail prices, it will

the manufacturers to decide whether or not into, current retail prices into

not

to absorb duty increases

and

conversely whether

or

of duty decreases to consumers.

pass

on

the benefits

人

lc

13.

сер

Sir,

The new duty structure comes

into effect

this afternoon by virtue of a Public Revenue Protection

In

due

course,

I

shall introduce into this Order. Council an amendment bill to the Dutiable Commodities

Ordinance to formalise the changes.

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