NO INCREASE IN DEMAND

Nelson Evening Mail, Volume LXVI, 1 September 1934, Page 11

NO INCREASE IN DEMAND

PRICE OF CIGARETTE PAPERS

REDUCTION TO FORMER LEVEL

Because most smokers who habitually “roll them own” laid in fairly large supplies of cigarette papers before the rise in prices following the announcement of the increased tariff on 10th July, retailers so far have 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 Christchurch at practically the same prices as ruled before the new tariff schedule came into force (reports the “Press”). The only exceptions are one or two of the foreign brands. Although the tariff on cigarette papers, both British and foreign, has been reduced by a book, the public is getting trie benefit of a reduction of a penny, stated a leading Christchurch tobacconist. This will more than make up for any additional cost to consumers dur. ing the period of increased prices. Actually, said the tobacconist, not many packets of cigarette papers were sold at the higher price, but the public accepted the increase very philosophically. Immediately after the tariff resolutions were announced, many smokers took steps to secure supplies of papers before the price was raised, and although retailers were careful not to sell papers in largo quantities, many smokers must still bo using the supplies that were bought then. Consequently there had been little change in demand following the lowering of the price on 21sfi August. Generally speaking, it appeared that few papers would be available in future at Id a packet, although it was possible that books of British papers con-

taining a reduced number might be sold at that price. Several good quality papers were being sold at 2d a packet, and papers of foreign make at 3d a packet. COST OF IMPORTATIONS A tobacco merchant stated • that the principal source of supply of cigarette papers was France. Small importations came also from Australia. The duty before 10th July was 25 per cent. British and 50 per cent, foreign, the latter being subject also to a surtax of 22J,- per cent. This made the rate payable £67 7s 6d per cent. On an average current domestic value, in tho country of export, of 3s a box of 100 packets, this was a duty of about 2s a box.

Tlie duty at first amended was British, lsd a packet of 60 papers, or 10s 5d a box of 100 packets, and foreign lgd 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 cost of French papers about 21s lOd a box. These were being sold wholesale at) prices ranging from 23s to 25s a box, according to brand.

The amendment had reduced the duties to a packet British and fd a packet foreign. The duty on foreign papers 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 papers about 14s 2d a box, or 1.7 d a packet. The landed cost of British or Australian papers was about 1.25 d a packet, which permitted of these being sold retail at 2d a packet.