Increased Import Duty On Alcohol & Tobacco Revoked


Much to the delight of large segments of the community alcohol and tobacco products are now back to their old price after Cabinet revoked the order that generated the increase.
The price of alcohol and tobacco products was increased via an order that was made by Premier and Minister for Finance, Dr. Orlando Smith on 29 April with the approval of the Cabinet. The order essentially amended the Customs Management and Duties Act.
However, on 11 August the Customs Management and Duties (Revocation) Order, 2016 was gazetted as a result overturned the order that took effect on 1 June.
In June it was announced that the price of alcohol and tobacco products would have increased as the government’s newest revenue generating mechanism went into force.
The amended Customs Management and Duties Act was expected to bring additional funds to Government’s coffers from tobacco and alcohol imports. Instead of the fixed price that was stated in the Customs Management and Duties Act, 2010 — consumers from June were required to pay an across the board percentage.
When the announcement of the new duty was made bar owners and alcohol vendors publicly stated that they were unhappy with the change, and explained that the order would greatly affect their establishments.
Some commentators noted that both tobacco and alcohol cause health problems including cancer, emphysema, liver disease, high blood pressure, brain damage, addiction and more.