No: CE 20                                            28 November 1995

BUDGET 1995 : EXCISE

REDUNDANT EXCISE LEGISLATION TO BE PRUNED


The Chancellor announced that from Royal Assent redundant legislation 
governing the administration of excise duties will be repealed.  This 
will help to simplify and modernise the law.


NOTES FOR EDITORS

1.     The systems for the repayment of excise duty which has already 
been paid have grown up over the past 300 years. Obviously, many 
changes have taken place over that period. Some goods have ceased to 
be liable to excise duty and businesses have been given more 
opportunities to operate in an environment where duty is suspended 
rather than having to be paid and then subsequently reclaimed from 
Customs. Against this background, a number of repayment provisions 
have become redundant.

2.     The package of repeals comprises:

	(a) Section 3 of the Finance Act 1977 and Section 11 (3) of 
	the Tobacco Products Duty Act 1979 (repayment in respect of 
	tobacco used in the manufacture of a tobacco product after 
	having borne duty under section 4 of the Finance Act 1964);
	(b) Section 22(6) of the Alcoholic Liquor Duties Act (ALDA) 
	1979 (additions in respect of waste which are deemed to be 
	made to tinctures exported or shipped as stores);
	(c) Section 23 of ALDA (allowances in respect of British 
	compounded spirits);
	(d) Section 92(6) of ALDA (transitional right to drawback); 
	and, 
	(e) Sections 9(2) and (3) of the Isle of Man Act 1979 
	(removal to the Isle of Man treated as export for the 
	purposes of drawback).


3. The estimated revenue effect of these repeals is negligible.

4. Details for traders are available in Budget notice BN 124/95.


ISSUED BY:  HM CUSTOMS AND EXCISE,
	    PRESS AND INFORMATION OFFICE,
	    NEW KING'S BEAM HOUSE,
	    22 UPPER GROUND, 
	    LONDON, SE1 9PJ

TELEPHONE:  0171 865 5468/5470/5471

FAX:        0171 865 5625/5667