Explanatory Memorandum(Circulated by authority of the Minister for Justice and Customs, Senator the Honourable Amanda Vanstone)
Financial impact satement
It is estimated that $7.2 million of revenue will be forgone annually by the removal of nuisance tariffs.
The aim of imposing excise equivalent rates of duty on toluene, benzene, xylenes and mixed alkylbenzenes is to reduce the financial incentive to misuse these chemicals for illicit blending with excise paid petroleum products. As arrangements are in place to remit and refund the duty for legitimate uses of these products, the net revenue effect is zero.
Any financial impact from these change was costed into the amendments legislated in the Customs Tariff Amendment (ACIS Implementation) Act 1999 - Act 141 of 1999.