TAX-FREE WHISKY.

Auckland Star, Volume LVII, Issue 7, 9 January 1926, Page 10

TAX-FREE WHISKY.

■ t EXPORTED FROM BRITAIN. FOREIGNER DOES NOT PAY. As tlie Chancellor or the Exchequer, Mr. Winston Churchill, is searching for new sources of revenue, to avoid an increase of direct taxation in next year's Budget, surprise is expressed in political circles, says the "Daily Mail," that he should not have turned his attention to the large quantities of spirits which are exported from this country duty-free, while the home consumer is forced to pay a heavy excise duty on spirits. Particular attention is directed to the fact that while the exports to most countries are classified in the Board of Trade returns, no less than 2,155,042 proof gallons has gone to "other countries" in the ten months ended October "31. Undoubtedly the chief importer in this category is the United States, where, by reason of prohibition, this importation is not recognised. The inhabitants of Great Britain are paying a tax of 8/5* per bottle on homeproduced spirits 30 per cent under proof. The yield of this tax last' year was approximately £45,000,000. The coui-try is exporting spirits, duty" free, at the following rats: 1923 7,223,848 p.bof gallons. 1924 8,534,492 ~ „ 192§.(10 mos.) 6,137,000 „ ~ n

Taking the ten months of 1925 as a basis of calculation, an export duty equivalent to tlie excise duty would yield more than £20,500,000. .. It is. suggested that a new. tax could hardly be imposed at so high a rate without injury to British trade. The home consumption of spirits is falling, and British distilleries might set up distilleries abroad to avoid the tax.

That there might be difficulties in taxing spirits sent to, the Dominions, where an import duty might raise the price unduly, is recognised, but it is thought that these difficulties would not be insuperable. At any rate, a large and hitherto untapped source of taxation would yield revenue whicli would be paid ultimately by the foreign consumer.