TNAG-1641-FCO40-2288-Budget-of-Hong-Kong-1987 — Page 202

11.2.87

DUTIABLE COMMODITIES

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102.

general, the

I shall deal first with duties. In

principle underlying my proposals is that duty rates

should be maintained in real terms. My objective is to

secure regular small changes broadly in line with

inflation rather than less frequent, but inevitably

larger, increases.

There are some minor exceptions to

this principle but, by and large, I have followed it

closely.

Imported Hydrocarbon Oil

103.

I am

I am

I turn first to imported hydrocarbon oil.

aware that crude oil prices have increased with

consequential upward adjustments in fuel prices.

reluctant to add to the burden of consumers, but

nevertheless there is a need to maintain the real value of

the yield from this particular tax source. The duty rates

on hydrocarbon oil were revised last year (35).

I propose

to increase the duty rate on motor spirit from $2.30 to

$2.40 a litre and on diesel oil for road vehicles from

$1.15 to $1.20 a litre (36).

(35)

1986 Budget Speech, paragraph 99.

(36)

If the full increase is passed on to consumers, petrol prices will rise by about 2% and diesel prices by about 1.5%.

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