TNAG-1725-FCO40-2438-Minutes-and-Hansards-of-the-Legislative-Council-of-Hong-Kong-1988 — Page 45

L

Dutiable commodities

74.

itcut

The

I shall deal first with dutiable commodities.

principle underlying my proposals continues to be that specific duty rates should be maintained in real terms. I look for

regular small changes broadly in line with inflation rather than

less frequent, but inevitably larger, increases.

Imported hydrocarbon oils

75.

The duty rates on hydrocarbon oils were revised last

year (29). I propose to increase the duty rate on motor spirit from $2.40 to $2.55 a litre, and on diesel oil for road vehicles from $1.20 to $1.27 a litre (30). The refund on diesel oil to

#cents. the franchised bus companies will remain at 65

650 65 a litre. The

two increases come into effect this afternoon. I estimate the

additional revenue yield to be $98 million in 1988-89.

Intoxicating liquor and imported alcohol

76.

Gidal

First, for

Duty rates on intoxicating liquor were also revised

last year (31). This year I have three proposals. cider and perry, beer, non-European type wines and Chinese type

per

spirits, I propose an

increase of

of 6 in the specific duty

elements to restore their real value.

< (29) 1987 Budget Speech, paragraph 103.

(30) If the full increase is passed on to consumers, petrol prices will rise

by about 3.38) and diesel prices by about 2.1

(31)

per cent рез

1987 Budget Speech, paragraph 106.

рейсент

35

/77. Secondly

Page 45Page 46