TNAG-1641-FCO40-2288-Budget-of-Hong-Kong-1987 — Page 54

107.

Second, I propose a

reduce the number of duty rates.

minor structural adjustment to 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

additional revenue yield in 1987-88

to be $50 million, assuming no consumer resistance.

Imported Tobacco

110.

Duty rates on imported tobacco were revised last year (39). Further revisions are in order this year to maintain duty yields in real terms.

111.

I

I propose, therefore, to increase the duty on imported unmanufactured tobacco from $190 to $200 a kilogram, and that on

imported cigarettes from $210 to $220 a kilogram (40). estimate an additional revenue yield of $47 million in 1987-88. On the basis proposed, the duty differential between imported unmanufactured tobacco and imported cigarettes will remain at

about 10%.

(38) Appendix E.

(39) 1986 Budget Speech, paragraph 105.

(40)

Further

If the full duty increase is passed on to consumers, the average price per packet of cigarettes will increase by about 15 cents. details can be found in Appendix E.

33

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