Notice of Substituted Rates of Excise Duty - Notice No. 2 (2019)

Overview

The Excise Tariff Act 1921 was enacted to provide for the imposition of excise duties on various goods, including tobacco products. This legislation allows for the setting of excise rates for different types of goods through the use of a schedule. The Excise Tariff Amendment (Tobacco) Act 2016 further refined the excise duties applicable to tobacco products. The Excise Tariff Act 1921 was introduced to address the need for a structured approach to imposing excise duties on a variety of goods, ensuring a consistent and regulated imposition of these taxes. The Act is administered by the Parliament of Australia, and its policy objective is to ensure that the excise duties imposed are fair and effectively contribute to revenue generation while potentially discouraging the consumption of certain goods through higher taxation. The Excise Tariff Act 1921, through its various amendments and notices such as the one issued on 21 February 2019 by Rajitha Srikhanta, delegate of the Commissioner of Taxation, continues to play a crucial role in maintaining and updating the rates of excise duty for different goods. This notice, in particular, substitutes the excise duty rates for tobacco products from 1 March 2019, reflecting the ongoing legislative intent to regulate and adjust duties to align with current economic and health policy objectives. The Act's legislative framework enables the Australian Government to adjust excise duties in response to changing economic conditions, public health concerns, and revenue requirements.

Scope and Application

The Excise Tariff Act 1921 applies to the imposition and collection of excise duty on various goods, including tobacco products, as specified in the Schedule of the Act. The Act imposes a duty on goods classified under particular tariff items, and this notice specifically modifies the rates of excise duty applicable to these goods. The substituted rates of excise duty, as outlined in the notice, apply to goods classified under specific tariff items, namely item 5.1 and item 5.5, with effect from 1 March 2019. The Act's application is national in scope, as it is a Commonwealth Act, thereby extending its jurisdiction across Australia. This notice, issued under the authority of the Excise Tariff Amendment (Tobacco) Act 2016, provides the updated rates of duty for the relevant tobacco products, ensuring compliance with the current legislative requirements.

Key Provisions

The Excise Tariff Act 1921, through Notice No. 2 (2019), establishes updated rates of excise duty for specific goods, effective from 1 March 2019. According to the notice, the substituted rate of excise duty for goods classified under certain items in the Schedule to the Tariff Act has been revised. Specifically, item 5.1 now carries an excise duty of $0.81775 per stick, while item 5.5 is subject to an excise duty of $1,090.33 per kilogram of tobacco content. These changes are mandated under subsections 6AA and 6AAB of the Tariff Act, as amended by the Excise Tariff Amendment (Tobacco) Act 2016. The obligations imposed by this legislation are primarily directed at manufacturers, importers, and other entities involved in the production and distribution of the goods specified in the notice. These entities must comply with the new excise duty rates as stipulated from the effective date of 1 March 2019. This includes updating their pricing models, financial reporting, and any related documentation to reflect the new excise duties. Additionally, businesses need to ensure that their supply chains are aligned with these changes to avoid any discrepancies in the duties paid. Failure to comply with the new excise duty rates may result in legal consequences. The Excise Tariff Act 1921 includes provisions for penalties for non-compliance. The specific penalties for breaching these excise duty obligations are not detailed in the notice, but generally, penalties for non-compliance with excise duties in Australia can include fines, imprisonment, or both, depending on the severity of the breach. The maximum penalties are determined by the relevant courts and can vary based on the specific circumstances of the case. Additionally, any entity found to be in breach of these excise duty obligations may face civil consequences, such as being required to pay back the unpaid duty along with interest and potentially facing litigation from the Australian Taxation Office. Criminal penalties can also be imposed, which may include substantial fines and imprisonment for individuals responsible for the non-compliance. These provisions are intended to ensure that all parties adhere to the legislative requirements and contribute appropriately to the excise duties as mandated by the Excise Tariff Act 1921.