A DEAL IN TOBACCO.

Otago Witness, Issue 2913, 12 January 1910, Page 28

A DEAL IN TOBACCO.

MERCHANTS AND RETAILERS DIFFER. ■ ..:.

A QUESTION OF DUTY

The somewhat unexpected alterations by the Government of the recent surtax of 24 per cent, on tobacco to 1 per cent, as from December 24- has resulted (says the Lyttelton Times) in not a little feeling between merchants and retailers in Christohurch, which has arisen in the process of passing on the extra charge. It was- agreed last session that a surtax of 24 per cent., should be made on tobacco, cigars, and cigarettes, and this duty came into force on November 23. It was Anally decided that the surtax should be reduced to 1 per cent., and instructions were given to the Customs offices that this should be the rate on and after December 24. From NoveTnber 23 till December 24- the retailers had the 2i per cent, passed on to them by the. merchants, and when the new rate came into force they expected to have a corresponding reduction made. The merchants, however, continued to charge the full amount of 2£ per cent. On Wednesday the members of the tobacco distributing agency -met and agreed to reduce the surtax on the following Monday. The. position is slightly complicated. Tho merchants admit that they aiv» still charging the extra amount, although it is not now being charged through the Customs. It is stated that they cleared large lines at the 2g per cent, charge, and must continue that rate to a certain point to recoup themselves.

One of the retailers informed a reporter that there was no justification for the imposition of the full surtax when that amount was not being charged through the Customs. It was saifi by the merchants that they had cleared tobacco through the Customs during November and December on which they had to pay 2£ per cent., and they we're compelled to pass that amount on because they had paid it' on the stocks they now held. However, - ; he had been charged the extra amount on tobacco that he knew h-aSr been cleared 18 months ago, and in any caee the merchant was not likely to clear tobacco before he was called on to supply it. Goods ordered now might now be. cleared through, the Customs, and in that case the merchant would be pocketing 1£ per cent. ' The principal grievance of the retailers, however, was that they could not pass on any of the surtax (whether 2£ or 1 per cent., for the price of tobacco precluded that. No extra charge could be made on a sixpenny packet of cigarettes or any other tobacco of a standard price. The retailer added, with some indignation, that although the merchants had agreed to reduce the duty they had declared their inability to make the reduction to 1 per cent., and calmly proposed to make it 1£ per cent., to facilitate calculation. The representative of one of the Qhristchurch merchants said that the reason why the duty had not been reduced simultaneously . with the reduction through the Customs was that during November and December heavy lines had been cleared at 2g per cent., and the merchant could not afford to lese lg per cent, on these lines. The reduction of the surtax had occurred at a very inconvenient time, and the distributing association had been unable to meet before, or somethng might have been don© ea*lier. Nobody, except rjerhaps the merchant, would lose by the arrangement, as the retailers would naturally wait antil Monday to replenish stocks. December, he remarked, had been a very heavy month for tobacco, and large lines bad been cleared.

CHRISTCHURCH, January 7.

At a meeting of the committee of the Canterbury Tobacconists' Association this afternoon it was decided to write to the Tobacooriists' Distributing Association demanding a refund of lg per cent, as from December 24. when the Customs Department ceased to collect the 2£ per cent, surtax originally imposed. The association has ascertained that in Auckland the wholesale merchants are reducing the surtax on Monday next.