NRS 12082 15 35 137 - 1991 Cabinet Papers - Flipbook - Page 89
NEW SOUTH WALES-CONFIDENTIAL CABINET MINUTE
- 2BUSINESS FRANCHISE LICENCES (TOBACCO) AMENDMENT BILL 1991
(2)
PURPOSE OF THE PROPOSAL
2.1
The purpose of the proposed amendment is to increase
tobacco licence fees from 35 per cent to 50 per cent.
3.
RECOMMENDATION
3.1
It is recommended that Cabinet approve of the introduction
into Parliament of the Bill, as drafted by Parliamentary
Counsel, and summarised in Appendix "A".
(4)
SUPPORTING AND/OR BACKGROUND:
4.1
On 2 July 1991, I announced in Parliament an increase in
the tobacco licence fees from 35 per cent to 50 per cent.
The increased rate will apply from the monthly licence
period commencing on 28 August. As the licence for this
licence period is calculated on the basis of tobacco sales
in July, tobacco prices were increased from the beginning
of July to reflect the increased fee.
4.2
As the licence fee increase commences from 28 August 1991,
it is important to introduce the Bill into Parliament
before that date and to pass it as soon as possible
thereafter to allow enforcement action to proceed and to
minimise criticism that the legislation will have a
retrospective effect.
4 3
The increase will bring the New South Wales rate into line
with rates in all other States and Territories except
Queensland. The A.C.T. has announced that it will also
increase its tobacco licence fee from the same date as New
South Wales.
4.4
The Queensland Government has committed itself not to
increase its taxes and charges during the life of its
first term which ends in early December 1992. If this
commitment is adhered to, there will be no increase in the
Queensland tobacco fees until 1993 at the earliest.
4.5
In the meantime, additional resources will be allocated
to compliance activities to minimise the possibility of
evasion of NSW fees by importation and sale of lower taxed
Queensland tobacco products into New South Wales.
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