"WHAT A TRAGEDY!"

Evening Post, Volume CX, Issue 131, 1 December 1930, Page 11

"WHAT A TRAGEDY!"

TOBACCO TAXATION

Mr. Gerhard Husheer, chairman of directors of the National Tobacco Co., Ltd., Napier, makes-a striking departure from the stereotyped phraseology of tho ■ usual annual report to shareholders, of a public company. He states:— . "The past year has been marked by an unexpected event that has caused consternation and dismay amongst those connected with the New Zealand tobacco industry. I refer to the new Customs tariff, which, as originally drafted, increases the excise duty on New Zealand manufactured cut tobaaeo from Is Sd to 2s 8d per lb, while reducing the import duty'on foreign leaf from 2s to Is per lb. "Whatever can have induced the Government to encourage the use of foreign leaf and penalise New Zealand grown1? Evidently it is the shrinkage in the Customs duties, for which of course the local industry is made: responsible, and it follows that in the interest of revenue, its further expansion must be checked by any means, hence this hostile tariff. What a tragedy!" The chairman's report draws a parallel between the New Zealand woollen industry and tho tobacco industry, showing how the products of each has supplanted tho imported article, but the latter was specially taxed to meet the fall in Customs revenue collected on goods of foreign competitors. Reference is made to the investigations of the Parliamentary Committee on the tobacco duties, and it is hoped that the recommendations will have a sympathetic hearing from tho Government. The National Company, states the report, has already paid to the Customs in excise and 'import duties the sum of £124,490 for the last financial year, but this, amount, provided the company's turnover is maintained, will be increased by some £15,000 at the end of the year, when the new tariff will have been in operation twelve months. Items of expenditure of the company in New Zealand are given as follows:—Over £30,000 on; tins, canisters, and other packing material; £35,----000 in wages and salaries; £600;' in railway freights, and paid to growers last year approximately £50,000 for New Zealand grown leaf. Packing cases made of Now. Zealand timber amount to £3000, and the company is using many tons per month of wrapping.paper made by New Zealand paper mills, and large amounts are paid to printers supplying millions of labels and wrappers. In addition the Commissioner of Taxes will claim this year £17,000 for income tax. The company's balance at profit and loss for the year is £44,570, to which is added £4525, making a total of £49,095. Capital paid-up is £124,341; reserve account £65,000; total shareholders' funds £189,341. Taxation reserves £30,000; sundry creditors1 £6152. Assets include property, premises, machinery and plant,l £45,505; goodwill, patents, trade marks, £45,----701; stocks £51,610; advances on loans and purchases, £20,005; sundry debtors, £44,243; other assets, £564; interest accrued, £1720, and cash in hand and at bankers, £65,149.