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 Seventh Schedule to the Finance Act, 1995 (No. 8 of 1995), be charged, levied and paid, as on and from the 24th day of January, 1996, 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 |
£60.34 per thousand together with an amount equal to 16.93 per cent. of the price at which the cigarettes are sold by retail |
|
Cigars |
£91.540 per kilogram |
|
Fine-cut tobacco for the rolling of cigarettes |
£77.246 per kilogram |
|
Other smoking tobacco |
£63.507 per kilogram |
Resolution No. 1 provides for excise duty increases on tobacco products from midnight tonight which, when VAT is included, amount to 10p on a packet of 20 cigarettes with pro rata increases on other tobacco products. The Resolution will give effect to these increases. It is expected that they will yield £21.3 million in 1996 and £25.2 million in a full year. The increase in the consumer price index will be 0.14 per cent. It is expected that the 10p increase on a packet of cigarettes will lead to a reduction in cigarette consumption by about 1 per cent.