CANADIAN TARIFF

Evening Post, Volume CVII, Issue 140, 14 June 1924, Page 8

CANADIAN TARIFF

REDUCTIONS FORECASTED

TO BRING DOWN COST OF LIVING

The _ Speech from the Throne in the Canadian Parliament some weeks ago included; writes the Toronto correspondent of the Melbourne "Argus," a paragraph reading:—"ln the "opinion of the Government such reduction of taxation as it may be possible to effect should aim primarily at reducing the cost of the instruments of production in the industries based on the natural resources of the Dominion, thereby aiding materially in the development of our natural resources, and, through cheapened production, effecting a diminution in the cost of living." This announcement was generally interpreted as singling out agricultural implements for drastic treatment. It elicited words of approval from the Low Tariff or Freetrade Progressive or Farmers' Party, but it also brought deputations of manufacturers, business men, and wage-earners, protesting against reductions in the Customs duties. A delegation representing 21,000 workers asked for high duties in the case of textiles to protect manufacturers and workmen against "dumped" goods lrom Continental Europe with its low wages and depreciated currencies.. The Budget brought down by the Hon. W. A. Robb, .Acting Minister for Finance, on 10th April, contained some surprises, but in the main it carried out the intimation embodied in the "Speech." There are substantial reductions on farm implements of all.kinds and on farm wagons. At the same time manufacturers of these articles will be allowed to import free pigiron, bar iron, and bar steel when used in the manufacture of mowers, binders, and reapers, cultivators, horserakes, seed-drills, manure spreaders, and weedors. _ The sales tax.is removed from all the items grouped under the heading of farming industry, and also from binder twine. A similar method of treatment has been applied to the lumbering, mining:, and .fishing industries, namely, the induction of duties on the "machinery used in production, and the removal of the sales tax in certain cases. On the sales tax there is a general' reduction from 6 to 5 per cent. In addition to that the tax is removed entirely from cereal foods, milk foods, and salted or smoked meats. The sales tax on biscuits, canned vegetables, fruits, and preserves is reduced to 2} per cent., and the same reduction applies to boots and shoes, including rubber footwear. There is a, provision that materials used in the woollen and other industries which enter directly into the cost of the product will be exempted from the sales tax. In some cases there are reductions of 50 per cent, in the preference tariff, and of 30 per-cent, in the general tariff. It is _ estimated that these cuts in taxation will reduce the national revenue' by 24,000,000 dollars (£4,800,000). The Acting Minister for Finance expressed the hope that the changes, instead of injuring industry, would stimulate not only agriculture, mining, lumbering, and fishing, but manufacturing as well.. This is not the view of the industries seriously affected which are engaged in the manufacture of agricultural implements, steel, and iron, and there is also disappointment in the textile and footwear industries. The regulation is changed on the tea, duties to bring tea and sugar under the increased British preference granted last year. The Customs tariff is amended to extend the benefit of the British preferential tariff to any territory administered under a mandate'- of the" League of Nations by any British country to which country the benefit of the British preferential tariff has been extended. It is proposed to withdraw the benefit of the-British preferential tariff from any territory administered under a mandate of the League of Nations which has received the said benefit, and of which the mandatory State does not receive the British preference. Jt was expected that the Government would stabilise currency values for Customs valuation, but ho'such action has been taken. No further action is to be taken to prevent further dumping.