Tariffs Reduced: Revenue Loss May Be £1,000,000

Gisborne Herald, Volume LXXV, Issue 22697, 23 July 1948, Page 4

Tariffs Reduced: Revenue Loss May Be £1 ,000 ,000

(P.R.)

WELLINGTON, July 23

The loss of revenue consequent upon New Zealand’s adherence to the general agreement on tariffs and trade may exceed £1,000,000 annually, said the Minister of Customs, Mr. W. Nash, commenting on a proclamation gazetted last night notifying that the agreement is being applied provisionally by New Zealand as from July 26.

The Minister said the protocol of the provision application, which was signed on behalf of New Zealand on June 30, required the provisional application to be made effective within 30 days of signature.

All such concessions and adjustments in the rates of duty, which will become effective on July 26, are shown together with existing rates in a publication recently made available through the Customs Department. Less Sales Tax “The reductions in duty being mane under the agreement,” said Mr. Nash, “will involve a considerable _ amount of revenue. The reductions in oui,y will also in certain cases be reflected in reduced amounts of sales tax paid on the goods. “It is difficult to make any precise estimate of the total revenue involved, but based on imports in 1947 it exceeded £1,000,000.” Some of the more important items affected are raisins, oranges, preserved fish, tobacco leaf, cigarettes, surgical and dental instruments, medicinal preparations, coir mats and matting, sewing cottons, lace nets, braids and bindings, woollen textiles, table china, glassware, clocks, adding and accounting machines, typewriters, tools, measuring appliances, electric units for domestic refrigerators, industrial machinery, motor vehicles and timber.

The proclamation lists the undermentioned foreign countries whose products will be entitled to entry at most-favoured-nation rates:— 18 Foreign Countries Argentine, Belgium ( including overseas territories). Brazil. Chile, China, Cuba, Czechoslovakia, Egypt, France (including overseas territories), Greece, Lebanon, Luxemburg, Netherlands (including overseas territories), Norway, Spain, Sweden, Syria, United States.

In terms of the trade agreement made between New Zealand and Switzerland most-favoured-nation treatment is also extended to certain Swiss products. This is provided for by a separate Order-in-Council. Separate Orders-in-Council also provide for consequential amendments to the existing trade agreements with Canada and Australia as well as for certain exemptions from primage duty and surtax as provided for in the general agreement.

In certain cases the reduction in duty represents the removal of primage or surtax only, while in others there is also a reduction in the rate of duty.