TEA AND SUGAR

Otago Daily Times, Issue 21383, 10 July 1931, Page 9

TEA AND SUGAR

DOMINION IMPORTATIONS SOURCE OF CUSTOMS REVENUE In view of the rumours that the Government might possibly exploit a valuable source of revenue by a Customs duty on tea and sugar—a revenue, moreover, which it would be easy to collect —the following statistics should prove of interest. In 1904 the estimated population of New Zealand was 913,000. The consumption of tea at that period was 71b per head, and of sugar 1071 b per head. There was then a duty of 2d per lb on tea and of id per lb on sugar, the total taxation for both commodities runrung out at 5s 7icl per head of population per annum. The retail price of tea in that year was Is 6d to 3s per lb, and of sugar 21d to 3d, including the duties. In 1931 the estimated population of the Dominion is 1,450.000. The consumption of tea is now 71b per head and of sugar 85ilb. The retail price of tea is Is 2d to 2 lOd per lb, and of sugar 2d per lb, both duty free. Taking the present population of the Dominion—l,4so,ooo—and multiplying the number by 854, the quantity in lbs of sugar per head of population per annum, we get 123,075,0001 b. If, therefore, the duty of Id were reimposed a sum of £258,281 would be collected on sugar alone. Adopting the same calculations as regards tea—that is multiplying 1,450.000 by seven —a total consumption of 10,150,0001 b for the year 1931 is obtained. If the duty of 2d per lb were reimposed on this commodity a sum of £84,583 would be available. It is considered in some quarters tfcat the Government could obtain revenue to meet the needs of the unemployed by reiroposing the Customs duties on tea and sugar, and that even a greater duty than 2d per lb on tea and $d per lb on sugar could be imposed. Working out the principle of taxation on ability to pay, it is suggested that sugar, at any rate, is a luxury to some extent, and that the consumers of lollies, chocolates, fancy cakes, beverages, etc., would pay a considerable proportion of the duty.