TAXING THE SMOKER.

Auckland Star, Volume LXV, Issue 267, 10 November 1934, Page 12

TAXING THE SMOKER.

CIGARETTES AND TOBACCO. HIGH IMPOST OX CIGARS. Since tho much-appreciated reduction in cigarette prices some pipe smokers are complaining that they are being unfairly treated in that they are not receiving the same benefits as smokers of cigarettes. It is claimed, however, t'mt tho pipe Tieer. is getting a relatively cheaper smoke, because cigarettes are 50 per cent more heavily taxed than pipe tobaccos. While cigarettes are almost at tho prewar level tobacco prices are practically double what they were prior to 1914. The average tax on cigarettes, taken by weight, is approximately 11/ a lb, while pipe tobacco is taxed (5/10 a lb. The new duty on popular brands of imported cigarettes, those which weigh 2Alb a 1000, is £1 5/0 a 1000. Thus on a. packet costing (id or 7d the Government nets 3d. On tho ruling rate of pipe tobacco the smoker contributes an ounce to the revenue of the country on mixtures costing lid or 1/. A consolation is the fact that an ounce of pipe tobacco, generally speaking, takes longer to smoke than several packets of cigarettes, and it is here that a saving is made, even though sales tax, at the rate of Id a two-ounce tin, has to be paid on pipe tobacco and not on cigarettes.

"Even with cigarettes at Cd a packet tobacco is still regarded as a luxmy and taxed accordingly," said a leading tobacconist this morning. "'At the new prices cigarettes are a little dearer in New Zcala.nd than they are in England, but pipe tobaccos are about the same in price. Cigars arc the fly in the ointment. No consideration -worth while hae been given this article for eoiue years, and tho high duty lias practically killed tho cigar trade. There are thousands of cigars lying in bond that have been paid for but tho consignees are unable to lift them because they world not bo bought at a price that would give a return to tho retailer. Wo sell as many cigars in a year to-day as we did in a fortnight a few years ago. The Government is certainly losing a large amount of revenue by keeping the cigar duty at the high level it stands at to-day."