I move:
(1) That in this Resolution—
"the Act of 1977" means the Finance (Excise Duty on Tobacco Products) Act, 1977 (No. 32 of 1977);
"the Act of 1988" means the Finance Act, 1988 (No. 12 of 1988);
"cigarettes", "cigars", "sweetened pipe tobacco", "hard pressed tobacco", "other pipe tobacco", "smoking tobacco", "chewing tobacco" and "tobacco products" have the same meanings as they have in the Act of 1977, as amended by the Imposition of Duties (No. 243) (Excise Duty on Tobacco Products) Order, 1979 (S.I. No. 296 of 1979), and by section 55 of the Act of 1988.
(2) That the duty of excise on tobacco products imposed by section 2 of the Act of 1977 shall, in lieu of the several rates specified in the Fourth Schedule to the Act of 1988, be charged, levied and paid, as on and from the 26th day of January, 1989, at the several rates specified in the Schedule to this Resolution.
(3) IT is hereby declared that it is expedient in the public interest that this Resolution shall have statutory effect under the provisions of the Provisional Collection of Taxes Act, 1927 (No. 7 of 1927).
SCHEDULE
Rates of Excise Duty on Tobacco Products
Description of Product |
Rate of Duty |
Cigarettes |
£40.70 per thousand together with an amount equal to 13.56 per cent. of the price at which the cigarettes are sold by retail |
Cigars |
£60.217 per kilogram |
Sweetened pipe tobacco |
£60.851 per kilogram |
Hard pressed tobacco |
£38.914 per kilogram |
Other pipe tobacco |
£48.916 per kilogram |
Other smoking or chewing tobacco |
£50.814 per kilogram |
This is to give effect to an excise duty increase of 4p, including VAT, on a packet of 20 cigarettes in the most popular price category and to provide for pro rata increases in the case of other tobacco products. The duty will provide £9 million to the Exchequer in 1989 and £10.4 million in a full year. The effect on the CPI is 0.8 per cent. I have already given the figures for the effect on consumption.