NO INCREASE IN DEMAND

Press, Volume LXX, Issue 21257, 31 August 1934, Page 21

NO INCREASE IN DEMAND

PRICE OF CIGARETTE PAPERS REDUCTION TO FORMER LEVEL Because most smokers who habitu•lly "roll their own" laid fairly large supplies of cigarette papers before the rise in price following the •nnouncement of the increased tariff . on July 10, retailers so far- hove not noticed any marked increase in the demand for cigarette papers at the reduced price conforming to the amended tariff schedule. Cigarette Papers are now being sold in Christchureh at practically the same prices 18 ruled before the new tariff schedule came into force. The only exceptions are one or two of the foreign brands. Although the tariff on cigarette papers, both r " tlsh and foreign, has been reduced by U a book, the public is getting the benefit of a reduction of a penny, stated a leading Christchurch tobac conlst yesterday. This will more ttian make up for any additional cost consumers during the period oi crfc&secl prices. Actually, said tn© bacconist, not many packets ox papers were sold at the ■; Price, but the public accepted the increase very philosophically. Imrn ateiy after the tariff resolutions were J&nounced, many smokers took «ep Jp secure supplies Of P a P®£ s price was raised, and although " toilers were careful not to sell to large quantities, many . toust still be using the supplies that yere bought then. Consequently tnere M been little change in demand ioi 'owing the lowering of the price August 21. , +v ,„» Generally speaking, it appeared few papers would be available in tore at a penny a packet, although *as possible that books of Briusu Papers containing a reduced number Mfiht be sold at that price. Several Sod quality papers were being: sow W 2d a packet, and papers of foreig toake at 3d a packet. Coot of Importations A tobacco merchant stated that e Principal source of supply °f Papers was France. Small im P° ,L f v **me also from Australia. The omy wfore July 10 was 25 per cent. Bi j Jkh and 50 per cent, foreign, the lai being subject also to a surtax.

1 oer cent. This made the rate payable £67 7s 6d per cent. On an average current domestic value, in the country of export, of 3s a box ot W0 packets, this was a duty of about 2s a box. , , The duty at first amended was British, lid a packet of 60 papers, or 10s 5d a bo* of 100 packets, and foreign ljd a packet plus surtax. or 15s 4d a box. The cost, c.i.f., with exchange, of French papers, apart from duty, amounted to about 6s 6d a box. With duty added, this made the landed co't of French papers about 21s lOd a box. These were being sold wholesale at prices ranging from 23s to 2os a box, according to brand. The amendment had reduced the duties to id a packet British and id a backet foreign. The duty on foreign naners with surtax added was therefore 7s 8d a box of 100 packets. This, together with the c.i.f. and exchange cost made the landed cost of foreign BAners about 14s 2d a box, or 1.7 d a nacket The landed cost of British or nacket, which permitted of these bein o sold retail at 2d a packet.