TNAG-1641-FCO40-2288-Budget-of-Hong-Kong-1987 — Page 204

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3.2.87

107.

Second, I propose a minor structural adjustment

to reduce the number of duty rates. Duties on cider and

perry will be increased by rather less than the rate of

inflation to bring them into line with the basic rate of

duty on beer. Both categories will now attract a duty

rate of $1.28 per litre.

108.

I propose also to increase the basic rates for

imported ethyl alcohol and methyl alcohol from $4 per

litre to $4.30 per litre (38). This will maintain the

rates in real terms and keep them in line with the rates

for non-European type spirits.

109.

All these changes in rates are effective this

afternoon. I estimate the additional revenue yield in

1987-88 to be $50 million, assuming no consumer resistance.

Imported Tobacco

110.

year (39).

Duty rates on imported tobacco were revised last

Further revisions are in order this year to

maintain duty yields in real terms.

(38)

(39)

Appendix E.

1986 Budget Speech, paragraph 105.

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