LIQUORS DUTIES

Mr T. M. Hart: Sir, I have His Excellency the Governor's authority to move,

That this Assembly by virtue of the provisions of subsection (1) of section 3 of the Liquors Revenue Ordinance (Chapter 225 of the Revised Edition) resolves that, with effect from the 22nd day of November, 1955, the duties specified below shall be paid on intoxicating liquors in lieu of the duties imposed by a resolution of the Legislative Council at a meeting on the 18th March, 1952, published as Notification No. S 123 in the Gazette Supplement No. 28 of 21st March, 1952: - Intoxicating Liquors. Duty. $ c. I.-(a) Rectified Spirit 52 50 per proof gallon. (b) Brandy and any other intoxicating liquor not herein after provided for 76 90 per proof gallon. (c) Brandy in bottle and accepted by the Comptroller as not exceeding 81 per cent of proof spirit 60 00 per gallon. (d) Rum and Gin 52 50 per proof gallon. (e) Rum and Gin in bottle and accepted by the Comptroller as not exceeding 81 per cent of proof spirit 37 50 per gallon. (f) Whisky 76 90 per proof gallon. (g) Whisky in bottle and accepted by the Comptroller as not exceeding 81 per cent of proof spirit 60 00 per gallon. (h) Toddy-arrack, Saki, Pineapple spirit and Samsu (including Medicated Samsu) 31 00 per prooof gallon. (i) Bitters and Liqueurs not exceeding 100 per cent of proof spirit 52 50 per gallon. (j) Sparkling wines not exceeding 42 per cent of proof spirit 40 00 per gallon. (k) Still wines exceeding 26 per cent but not exceeding 42 per cent of proof spirit 18 75 per gallon. Intoxicating Liquors. Duty. $ c. (l) Still wines not exceeding 26 per cent of proof spirit 9 40 per gallon. (m) Ale, Beer, Stout,Porter, Cider and Perry 5 20 per gallon. Provided that if any brandy specified in item (b) or any liquor specified in item (c), (j), (k), (l) or (m) above is proved to the satisfaction of the Comptroller of Customs to have been produced in and consigned from the United Kingdom of Great Britain and Northern Ireland, the Republic of Ireland, the Dominions, India, Burma, the territories administered by Her Majesty's Governments in the Dominions under Trusteeship or otherwise, the British Colonies, the British Pro tectorates and Protected States, the Trust Territories of Tanganyika, the Cameroons under British Trusteeship or Togoland under British Trusteeship, the following preferential duties shall be levied thereon: - Intoxicating Liquors. Preferential Duty. $ c. (i) Brandy 69 20 per proof gallon. (ii) Brandy in bottle accepted by the Comptroller as not exceeding 81 per cent of proof spirit 54 00 per gallon. (iii) Sparkling wines not exceeding 42 per cent of proof spirit 30 00 per gallon. (iv) Still wines exceeding 26 per cent but not exceeding 42 per cent of proof spirit 15 00 per gallon. (v) Still wines not exceeding 26 percent of proof spirit 7 50 per gallon. (vi) Ale, Beer, Stout, Porter, Cider and Perry 4 80 per gallon. II. The duty payable upon intoxicating liquors distilled, fermented, made or prepared in any place licensed under the Liquors Revenue Ordinance for the distillation, fermentation, making or preparation of intoxicating liquors shall be: - Intoxicating Liquors. Duty. $ c. (a) Samsu (including Medicated Samsu) 27 00 per proof gallon. (b) Ale, Beer, Stout, Porter, Cider and Perry 4 80 per gallon. (c) Other intoxicating liquors 43 75 per proof gallon. III. The duty leviable on intoxicating liquors imported into the Cocos or Keeling Islands for consumption in the said Islands shall be Nil.

The increases in duty on intoxicating liquors which were announced on 9th November have been in force since that date by virtue of an order by the Governor under section 2 of the Public Revenue Protection Ordinance (Chapter 234). The purpose of this motion is to confirm these increases by resolution under section 3 (1) of the Liquors Revenue Ordinance within the 14 days prescribed in the Ordinance.

I have already explained on a previous occasion why these increases in customs duties are necessary, and I do not think I need say anything further on this point. The main increases are as follows.

The full duty on bottled whisky and brandy has been increased by $12 per gallon, that is, to a figure of $4 a gallon above the present Federation level. This will increase the duty on a quart bottle by $2. The preferential duty on bottled brandy has been increased by a corresponding amount. It is considered that these two commodities can take these substantial increases without any marked or lasting effect on consumption.

The import duty on samsu was raised by $4 per gallon to $31 per gallon. The excise duty has been raised by $3 per gallon. Here again, it is not thought that these increases in duty will have any marked or prolonged effect on consumption.

The preferential duty on still wines has been raised to Federation levels, and the full duty raised in such a way that the existing differentials are maintained.

The full, preferential and excise duties on beer, ale and stout, etc., have been increased by $1.20 per gallon to the Federation level. These increases will increase the duty on a pint and a quart bottle by 10 cents and 20 cents respectively. It is unlikely that these increases will have much effect on consumption.

As I said yesterday, the question of increasing the duty on rum and gin was also given careful consideration, but for a number of reasons it was decided not to make any change for the present. The position will, however, be carefully watched. Sir, I beg to move.

Mr Seah Peng Chuan: I second the motion.

Question proposed.

Mr M. P. D. Nair (Seletar): Sir, I would like to know from the Hon. the Financial Secretary whether he has considered a preferential duty on locally produced ale, because my contention is that, if we want to promote local industries, we will have to give a preferential tariff. I am not going to make a long speech, Sir, but I just want to find out whether he has considered it.

Mr Lee Kuan Yew: Mr Speaker, Sir, here again, I think we should put on record our full support of the move to increase taxation, indirectly falling on the whole community, on items which cannot be considered essential to life or health.

Singapore is one of the few places in the world where one can cheaply drink and smoke oneself to death. One does not need to have much wealth to be able to afford it. I think the time will come very soon when we should rescue the less strong-willed members of our population from such an unhappy state by taking excessive smoking and drinking out of their reach. We shall support the Government every time it comes with a proposal to step up taxation on these commodities. It is an accepted method of taxation in all civilised countries where they govern a country, not just hold the ring for private enterprise, where they govern the country and not just keep law and order. These are the accepted techniques of taxation, and the Government should not have the slightest doubt that they would get full support from the people.

Mr Hart rose -

Mr Speaker: Mr Hart, in reply?

Mr Hart: In reply, Sir, I would like to thank my friend the Member for Tanjong Pagar for his most eloquent support of our motion.

With regard to the point raised by my friend the Member for Seletar, we did consider the question of giving a preferential rate to local breweries, but we came to the conclusion that, having regard to the excellent results of last year's working, perhaps any preferential treatment was unnecessary at the present time.

Question put, and agreed to.

Resolved,

That this Assembly by virtue of the provisions of subsection (1) of section 3 of the Liquors Revenue Ordinance (Chapter 225 of the Revised Edition) resolves that, with effect from the 22nd day of November, 1955, the duties specified below shall be paid on intoxicating liquors in lieu of the duties imposed by a resolution of the Legislative Council at a meeting on the 18th March, 1952, published as Notification No. S 123 in the Gazette Supplement No. 28 of 21st March, 1952: - Intoxicating Liquors. Duty. $ c. I.-(a) Rectified Spirit 52 50 per proof gallon. (b) Brandy and any other intoxicating liquor not hereinafter provided for 76 90 per proof gallon. (c) Brandy in bottle and accepted by the Comptroller as not exceeding 81 per cent of proof spirit 60 00 per gallon. (d) Rum and Gin 52 50 per proof gallon. (e) Rum and Gin in bottle and accepted by the Comptroller as not exceeding 81 per cent of proof spirit 37 50 per gallon. (f) Whisky 76 90 per proof gallon. (g) Whisky in bottle and accepted by the Comptroller as not exceeding 81 per cent of proof spirit 60 00 per gallon. (h) Toddy-arrack, Saki, Pineapple spirit and Samsu (including Medicated Samsu) 31 00 per prooof gallon. (i) Bitters and Liqueurs not exceeding 100 per cent of proof spirit 52 50 per gallon. Intoxicating Liquors. Duty. $ c. (j) Sparkling wines not exceeding 42 per cent of proof spirit 40 00 per gallon. (k) Still wines exceeding 26 per cent but not exceeding 42 per cent of proof spirit 18 75 per gallon. (l) Still wines not exceeding 26 percent of proof spirit 9 40 per gallon. (m) Ale, Beer, Stout,Porter, Cider and Perry 5 20 per gallon. Provided that if any brandy specified in item (b) or any liquor specified in item (c), (j), (k), (l) or (m) above is proved to the satisfaction of the Comptroller of Customs to have been produced in and consigned from the United Kingdom of Great Britain and Northern Ireland, the Republic of Ireland, the Dominions, India, Burma, the territories administered by Her Majesty's Governments in the Dominions under Trusteeship or otherwise, the British Colonies, the British Pro-tectorates and Protected States, the Trust Territories of Tanganyika, the Cameroons under British Trusteeship or Togoland under British Trusteeship, the following preferential duties shall be levied thereon: - Intoxicating Liquors. Preferential Duty. $ c. (i) Brandy 69 20 per proof gallon. (ii) Brandy in bottle accepted by the Comptroller as not exceeding 81 per cent of proof spirit 54 00 per gallon. (iii) Sparkling wines not exceeding 42 per cent of proof spirit 30 00 per gallon. (iv) Still wines exceeding 26 per cent but not exceeding 42 per cent of proof spirit 15 00 per gallon. (v) Still wines not exceeding 26 percent of proof spirit 7 50 per gallon. (vi) Ale, Beer, Stout, Porter, Cider and Perry 4 80 per gallon. II. The duty payable upon intoxicating liquors distilled, fermented, made or prepared in any place licensed under the Liquors Revenue Ordinance for the distillation, fermentation, making or preparation of intoxicating liquors shall be: - Intoxicating Liquors. Duty. $ c. (a) Samsu (including Medicated Samsu) 27 00 per proof gallon. (b) Ale, Beer, Stout, Porter, Cider and Perry 4 80 per gallon. (c) Other intoxicating liquors 43 75 per proof gallon. III. The duty leviable on intoxicating liquors imported into the Cocos or Keeling Islands for consumption in the said Islands shall be Nil.