TOBACCO PRICES

Evening Post, Volume CXXVIII, Issue 77, 28 September 1939, Page 13

TOBACCO PRICES

THE NEW DUTIES

INCREASES EXPLAINED

Reference to the increasF in the prices of tobacco, and cigarettes was. made last night by the Minister of Industries and Commerce (the Hon. D. G. Sullivan). He stated that immediately following the announcement of the new duties an investigation was made by the Price Investigation Tribunal, with a view to ascertaining the amount of increase that this would mean in the retail prices of tobacco and cigarettes:

"The investigation has shown," said Mr. Sullivan, "that the new duties will, necessitate an increase in the retail, price of cigarettes.of one penny .per packet of ten, and in the case of tobacco 3d per tin of two. ounces.. "It has been the practice in the past," he said, "for all increases in Customs and excise duties to be passed on to the consumers immediately and some of the retailers, in order to conserve their stocks, have already brought these increases into effect. It would have been impossible to have compelled all tobacconists throughout New Zealand to refrain from putting up. their prices until such time as their, existing stocks had been exhausted, for the reason that most tobacconists hold small stocks of the various brands of cigarettes and tobacco and draw supplies frequently from wholesalers,, some of whom have paid duty at the higher rates. If some had been allowed to increase their prices on account of having to renew their stocks while others who held larger stocks had not been similarly permitted, it would have caused dislocation in the trade and consequent, inconvenience, to the public.

"Pursuant to the authority contained! in the Price Stabilisation Regulations it has been decided that a general increase in prices to the extent of one penny a packet of ten cigarettes, and 3d per two-ounce tin of tobacco would be permitted," said1 Mr. Sullivan in, conclusion.