1926-10-16 — Page 16

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THE HONGKONG“ TELEGRAPH,

LIQUOR TAXES.

INCREASE IN CHINESE DUTIES.

The surprise of the Budget Is the revision of the duties on Intoxicating liquors, the motion regarding this new taxation being introduced by the Hon. Colonial Secretary. By the raising of these duties the Revenue will be Increased by 5000,000 next year, and possibly by a little more when normal conditions rule:.

SATURDAY, OCTOBER 16, 1926.

but I would point out at once that no change has been made in the duties on the more heavily tanod Hiquors.

I would hasten to add, that thie Is from-no apostal regard for the pockets of those who drink these more expensive forms of liquor, but because the Government is advised thật thla type of liquor? already bears as high a duty as can in présent circumstances be properly charged upon it and thật this duty works out far moja hoavily in proportion than the duty charged upon the so-called Chinese wines.

J

The only alteration in what are termed European type liquors is the abolition of the special con- resolution cession of 50 cents a gallon on.

wine imported in wood.

The Hon. Colonial Secretary, rising to introduce without notice] in motion regarding taxation said: By leave of the Council I rise on your Excellency's instructions to move the That pursuant to section 41 (1) of the Liquors Consolidation Or- dinance, 1911, Ordinance No. 9 of 1911, on and after the 16th "day of October, 1926 the duties to be paid upon intoxicating liquors heretofore or hereafter imported into, distilled, made or prepared in the Colony shall be assessed as follows: ་ ་།་ ་

EUROPEAN TYPE LIQUORS. On all liquors, and on all cham pagnes and other sparkling wines $10.00 per gallon,

On all brandy, gin, rum, whisky and other spirit liquors.$6.00 per gallon.

*

On all port, sherry and madeira $4.00 per gallon.

On all other still wines $3.00 per gallon.

On boer, porter, cider, porry and stout $0.40 per gallon.

བ་

On all intoxicating liquors above the strength of 18 degrees under proof, for every degree above such strength, in addition to the ap- propriate duty as above $0.07 per gallon..

CHINESE TYPE LIQUORS, On all Chinese type spirits containing not more than 25 per cent of alcohol by weight $1.20 per gallon..

For every one per cent of addi- tional alcoholic strength by weight $0.05 per gallon.

JAPANESE TYPE LIQUORS. On all cake containing not more than 25 per cent of alcohol by weight, $120 per gallon.

|

I ain informed that the bottling industry is a very small one, that the difforontiation has given rise to difficulties in the collection of the duty, that the purchasing public has shown a growing dia- taste for locally bottled wings, and that the differentiation is no | longer advisable and can be abol- ished with advantage to the Ro- vende and no detriment to legiti- mate trade.

Unsatisfactory System.

The present system of Butles on native wines and spirits has proved unsatisfactory and it is now pro- posed to drop the elaborate differ- entiation into classes, which have been found in some cases meaning- less, and in some misleading, and to base the duties on the more aclentile method of calculation by alcoholic. strength throughout.

Native liquor bears at present a very light burden of taxation and the new duties have been calculated with a view to a con- siderable increase in the present very inadequate revenue derived from such liquor.

Even with the new duties the, tax on Chinese spirits will be far leas in proportion than on the European type liquors. I would observe that the so called native wines are in fact all spirits pro- duced by distillation and age therefore properly assessed on the alcoholic strength like imported spirits.

For every one per cent of ad." Alcoholic Strength. ditional alcoholic strength by weight, $0.05 per gallon.

OTHER LIQUORS.

The duty which we now propose to levy is based on a normal alco- holic strength of 25 per cent by weight, the duty on which will be $1.20. per gallon, and 5 cents per gallon will be added for every ad- ditional 1 per cent of alcoholic strength by weight.

On any intoxicating liquor which is not specifically mention- ed or referred to in the foregoing Parts II II., $10.00 per gallon Provided that it shall be lawful

The present rates on native Hi- for the Superintendent of. Imports: and Exports, in his discretion, to quor brought in about $800,000 in assess the duty on any such intox-1924, the last normal year, and. icating liquor at such lower rate about $665,000 in 1925. I wish to as is provided in Parte I. II. and deal first with native liquors other III above for the liquor which the than New Territories" liquor duti- Superintendent shall deem to ap-able at the special rate of 20 per proximate most nearly to such in cent per gallon. The consumption of these liquors in 1925, apart, of toxicating liquor.

course, from smuggled liquor, was G05,113 gallons imported on which duty recovered was $390,390, and 899,260 gallons locally produced duty recovered $242,556, a total of $632,946.

And that on all spirits distilled within the boundaries of the Colony of Hongkong there shall be allowed a deduction of ten cents per gallon from the duties heretofore enumerted.

The new duties on these liquora And further that the resolutions

are set are estimated to bring in an ad-'- of this Council which "out on pages 440, 441 and 442 sfditional $484,000 being 3310,000 the Regulation of Hongkong, 1644- on imports and $174,000 on local 1844-1925 under the heading "Re-produce. solution of the Legislative Coun- til" shall cease to have effect on the coming into operation of the foregoing resolution.

Discussion Facilities..

I should first like to explain, to the Council that though for ob- vious reasons no notice could be given of this motion, for if notice had been given it is clear that op- portunities, would have arisen for evading the duty, the Government has no desire to stifle criticism, and although I trust the motion will be passed this afternoon su that it can come into force forth- with, the Government will be pre- pared to give all reasonable facl lities for a full discussion of the proposals at an early date if any member, after considering the ef- fects of the changes at his leisure, feels it incumbent on him to give notice of a motion for their modi- fication.

In my remarks on the intro 'ue- tion of the Supply Bill, I made re ference to the need for additional revenue and I mentioned that the Government hoped to raise this re- venue in part from certain minor changes estimated to bring in about $138,000."

44

Secondly, as regards the special rated New Territories liquors the total produce of which we have re- cord was, in 1925,165,137 gal- | Ions on which the duty was $33,- 027.

From this must be deducted 26,004 gallons exported to urban districts, and a quantity which I am advised cannot well be less than 40,000 gallons smuggled into those same districts, which would reduce the consumption, in the New Territories to 99,133 gallons which the duty would be on $19,827.

Extensive Smuggling. In the existing tariff these New. Territories liquors are rated at the very low duty of 20 cents a gallon for consumption in the New Ter ritories whatever their alcholic strength.

whether distilled there or not on the same level as other Chinese liquors. The present system has given rise to extensive smuggling and however honest the distillor

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and it is felt that there will be now before the Council. The Colony are subject to Excise su- little hardship in raising the figure should be amended to pervision and restriction which, duties to a parity with those of the $1,800,000.

while they result in a superior rest of the Colony,

A new provision has been insert-article, undoubtedly tend to in-

It is proposed to place spirits. In view of the greatly improveded to cover unenumerated liquors, crease the cost of production.". distilled in the New Territories methods of communication it has ie. the various special liquors Distilleries situated outside our become almost impossible to pro- which it is impossible to enumerate borders are not subject to these vent smuggling from the New Ter individually, and while this has restrictions and it is thought ritories to the rest of the Colony been operly placed at the highest equitable, that the local product and two rates of duty for the same rate you will notice that to avoid should not be penalised in this article in what is really one Ter-hardship, power has been given to way without some compensating may be he cannot say what his pur-tory can no longer be defended. the Superintendent of Imports and advantage. I think this small

chaser will do with the liquor pur- chased.

Six Lakhs Increase.

The increased rates should pro- Exports to classify such liquors conecasion to the local producer duce a revenue of about $120,000 according to the classes to which will meet with the the approval It was obvious however, that Undoubtedly large quantities of

of Hon. Members. Under the existing classification this sum was insufficient for our the low taxed spirit have found an increase of roughly $100,000 on they properly belong.

I am afraid I have delayed Coun needs, and I referred to certain their way into the urban districts the liquor consumed in the New measures which I should lay be by train, motor car, lorry and truck Territories, and a total increase every unenumerated liquor scil far too long, but I wish to make of $584,000 on the present revenue entitled to entry at 40 conta a gal the intentions of the Government fore you later. After careful con- to the detriment of the Revenue, from all native liquors.

lon and it may well be that liquor as clear as possible. I now form sideration the Government has d and in defiance of the law."

which ought properly to pay ally move the resolution which cided to recommend to this Coun

Two Standards.

high rate comes in too cheaply by have already read and would more cil the raising of some of the Li- When the lower duty in favour.

the fortuitous circumstance that it remind Hon, Members that With the Improved conditions has not been expressly enumerated, while the Government regards t quor Duties whereby we hope to of the New Territories was first increase our Revenuo by abouz imposed there was no railway and hoped for next year, the Govern

as important that the resolution" $600,000 next year and possibly a there were ho motor roads, and the meat feels justified, if the pro-

should be passed to-day, ample op- little more when conditions have New Territories' distilleries have posals now put forward are ap returned fully to the normal. moved out into the Now Terri proved, in anticipating a total in- Finally I come to the last newportunity will be given if desired

Heavily Taxed Liquors. torica and there are comparatively crease of some $600,000 in the re-provision, viz, a reduction of 10 for subsequent discussion.

few loft on Hongkong Island. The venue from Liquor Duties over conta a gallon in favour of locally The Hon. Colonial Treasurer standard of living has risen con- and above the figure of $1,200,000 distilled spirits. Spirits of the seconded and the resolution was sidorably in the New Territories inserted in the draft estimates Chinese typo manufactured in the adopted without discuselon.

An opportunity has been taken

to recast the form of the resolu- tion Imposing the liquor duties,

Local Spirit Duty.