I move Financial Resolution No. 3:
(1) That in this Resolution—
"the Principal Act" means the Value-Added Tax Act, 1972 (No. 22 of 1972);
"the Act of 1996" means the Finance Act, 1996 (No. 9 of 1996).
(2) That the rate of value-added tax on the supply of livestock and live greyhounds and the hire of horses be increased from 2.8 per cent. to 3.3 per cent. of the taxable amount or value of such goods and services, and that, accordingly, the Principal Act be amended in subsection (1) (inserted by the Finance Act, 1992 (No. 9 of 1992)) of section 11 by the substitution in paragraph (f) of "3.3 per cent." for "2.8 per cent." (inserted by the Act of 1996).
(3) That the rate of flat-rate addition to prices of agricultural produce or agricultural services supplied by unregistered farmers be increased from 2.8 per cent. to 3.3 per cent., and that, accordingly, section 12A (inserted by the Value-Added Tax (Amendment) Act, 1978 (No. 34 of 1978)) of the Principal Act be amended by the substitution in subsection (1) of "3.3 per cent." for "2.8 per cent." (inserted by the Act of 1996).
(4) That this Resolution shall have effect as on and from the 1st day of March, 1997.
(5) 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).
Resolution No. 1 relates to tobacco products. This involves an increase of 7p on a packet of 20 cigarettes andpro rata increases in other tobacco products. It is expected to yield £14.9 million in 1997 and £17.6 million in a full year. The consumer price index effect is estimated at 0.1 per cent. There has been a fair degree of success with the tax stamps programme which is designed to deal with tax evasion in the cigarette area. Consumption of cigarettes on which duty was paid increased by 1 per cent in the last 12 months. A packet of cigarettes is 19p dearer in Northern Ireland than it is here at the moment. As a result of this increase the differential will be 12p.
Resolution No. 2 refers to hydrocarbons. Here the increase in duty on leaded petrol is 2.5p on a litre or 11.5p per gallon. The increase in duty on super unleaded petrol, inclusive of VAT, is 2p per litre or 9p per gallon. The increases in duty on unleaded petrol, inclusive of VAT, amounts to 1.5p or 7p per gallon. The increase in duty on autodiesel, inclusive of VAT, amounts to 1.5p per litre or 7p per gallon.