CUSTOMS DUTIES

Greymouth Evening Star, 14 June 1930, Page 7

CUSTOMS DUTIES

PROSPECTIVE INCREASE. [special to “stab.”] AUCKLAND, June 14. “It is an extraordinary statement to come from the Minister of Finance, as it conveys a suggestion that increases in customs duties are contemplated, and the effect of the statement will probably be that heavy withdrawals from bond will take place in the effort to escape extra levies,” said Mr. Malcolm Stewart, President of the Auckland Chamber of Commerce yesterday, in commenting on the announcement made by Mr. Forbes, regarding the possible tariff increases. Mr. Forbes further stated that in connection with any increases in customs duties which might be approved by Parliament, the Government would seriously consider making such increases in duties retrospective, if it were satisfied that abnormal clearances of the goods affected had been made in anticipation of Parliamentary action. That will probably many difficulties, as in the interim, i soms goods are likely to pass through many hands, commented Mr. Stewart. It looks like an invitation to clear luxury lines from bond as quickly as possible, said a city importer. It would seem a good gamble to do so. If goods are subjected to a higher levy, little will be lost by drawing them out now, for it means only payment of interest at say 7 per «ent. on overdraft for the month. Parliament will not meet for almost a fortnight, and it will apparently be a fortnight after that before the Budget is presented. Ono man said that the Government’s recent action in advancing the interest rate to per cent, was to raise “ready cash.” Possibly the Prime Minister was animated by the same motive giving such a clear indication of increases in Customs duties. Meanwhile, importers are “frankly guessing” as to what goods the higher levies will touch. There is a natural disposition to anticipate that luxury lines will be the most likely ones, wnilo it was suggested in several quarters that increased duties on spirits and petrol might furnish the Government with the readiest means of i collecting more revenue.

However, there has not been so far any apparent move in Auckland to withdraw goods from bond in more than ordinary volume. The Collector of Customs, J. Mclntosh, said he had examined the books and had found nothing to suggest that Auckland importers were apprehensive of being caught. Mr Mclntosh saia he had not heard of retrospective customs duty being levied in New Zealand, although he believed such authority existed in Canada. Possibly, Mr Forbes’ announcement was based on unusual withdrawals from bond in the South, but certainly such movement was not yet manifest in Auckland.