TAX CHANGES ON PERSONAL CONSUMPTION

Duties on Cigarettes

Duties on cigarettes were last revised in February 1998. In support of the continuing national effort to discourage smoking, especially among the young, the excise duty on cigarettes will be raised from $130 to $150 per kilogram. Details of the changes are in Annex A. (Cols. 1123-4). The changes will take effect from today. There will be a revenue gain of about $64 million annually.

CONCLUSION

Mr Speaker, Sir, barring any major external shocks, the recovery momentum is expected to continue in 2000 and beyond. We have come through the economic crisis well because of our strong fundamentals and sound principles of governance. We are well placed for future growth, provided we do not become complacent. The economic crisis has also taught us valuable lessons on the post crisis economic environment and strategies needed for future growth. We have to face up to the challenges of a globalised economic system and keep pace with changes in technology to remain relevant and useful. We need to accelerate the pace of economic restructuring. Our costs must remain competitive. We must have world-class infrastructure and strong reserves and our workforce must be continually upgraded. Most important of all, we have to work on preserving our social cohesion, without which we will be much weaker as a nation in weathering a future crisis.

Mr Speaker, Sir, I beg to move. [Applause.]

Mr Speaker: The Question is, "That Parliament approves the financial policy of the Government for the financial year 1st April, 2000 to 31st March, 2001." In accordance with paragraph (1) of Standing Order No. 86, the debate now stands adjourned.

Debate to be resumed on what day, Dr Hu?

Dr Richard Hu Tsu Tau: Monday, 6th March, 2000, Sir.

Mr Speaker: So be it.