I move Financial Resolution No. 1:
(1) THAT in this Resolution—
"the Act of 1977" means the Finance (Excise Duty on Tobacco Products) Act, 1977 (No. 32 of 1977);
"cigarettes", "cigars", "fine-cut tobacco for the rolling of cigarettes" and "other smoking tobacco" 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 Regulation 26 and Regulation 29 of the European Communities (Customs and Excise) Regulations, 1992 (S.I. No. 394 of 1992).
(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 Second Schedule to the Finance Act, 1993 (No. 13 of 1993), be charged, levied and paid, as on and from the 27th day of January, 1994, 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 |
£53.25 per thousand together with an amount equal to 16.83 per cent. of the price at which the cigarettes are sold by retail |
|
Cigars |
£81.702 per kilogram |
|
Fine-cut tobacco for the rolling of cigarettes |
£68.944 per kilogram |
|
Other smoking tobacco |
£56.682 per kilogram |
This resolution provides for excise duty increases on tobacco products from midnight tonight which, when VAT is included, amount to 8p on a packet of 20 cigarettes with pro rata increases on other tobacco products. This represents an increase of 3.2 per cent. Following this increase, the price of a packet of 20 cigarettes will be 3p higher here than in the UK or in Northern Ireland. The purpose of the resolution is to give effect to a budget day increase of 8p, including VAT, on the packet of cigarettes with pro rata increases on other tobacco products. These changes will take effect from midnight tonight. This increase is expected to yield £16.1 million in 1994 and £19 million in a full year and have a CPI effect estimated at 0.117 per cent.