EXPLANATORY STATEMENT
EXCISE REGULATIONS (AMENDMENT)
STATUTORY RULES 1988 NO. 216
ISSUED BY THE AUTHORITY OF THE MINISTER OF STATE FOR SCIENCE, CUSTOMS AND SMALL BUSINESS
Paragraph 50(1)(k) and Regulation 56 of the Excise Regulations (“the Regulations”) provide that a refund of excise duty paid on the production of beer may be obtained if the beer has been destroyed with the permission of a Collector of Customs as unfit for human consumption, or if it is returned for whatever reason to the brewery that produced the beer, within 90 days of the day the beer left the brewery of production.
On Budget night, 23 August 1988, the Minister for Science, Customs and Small Business tabled a proposal to alter the Excise Tariff, which significantly reduced the amount of excise payable on the production of beer as from 12.01 a.m. on 24 August 1988. As a consequence of this change, an amendment has been made to the Excise Regulations with effect from the same time, so as to avoid any undue loss of Government revenue by an unrestricted use of an existing refund circumstance contained in the Regulations.
So as to prevent any possible misuse of this refund circumstance, and to keep the pecuniary level of the circumstance at or near the quarterly average for last year of approximately $200,000, a ceiling has been put on refunds of duty for the first 90 day period after 23 August 1988 as follows:
The regulation provides;
• where beer has been returned to the brewery of manufacture pursuant to refund circumstance 50(1)(k)(i) during the 90 day period commencing on 24 August 1988, the total amount that may be refunded in respect of claims relating to that brewery during that period is an amount equal to 30% of the amount refunded in respect of beer returned to that brewery under that circumstance in the previous year (paragraph (a)); or
• where beer has been destroyed with the permission of the Collector pursuant to refund circumstance 50(1)(k)(ii) (eg. spoilt beer) and the Collector’s permission was given during the 90 day period commencing on 24 August 1988, the total amount that may be refunded in respect of claims relating to that brewery during that period is an amount equal to 30% of the amount refunded in respect of beer destroyed from that brewery under that circumstance in the previous year (paragraph (b)).