TOBACCO DUTY

Southland Times, Issue 19458, 24 January 1925, Page 4

TOBACCO DUTY

REDUCTION ABOUT £BO,OOO YEARLY. AUCKLAND, January 22. The reduction in excise duty imposed on pipe tobacco, both cut and plug, which came into force last Saturday, is now operating in most of the retail shops in Auckland. The reduction provides that both cut and plug tobacco shall be imported into New Zealand 8d per pound cheaper than hitherto. Both wholesalers and retailers are making the same reduction, so that the consumer will now get his pipe tobacco one halfpenny an ounce cheaper. Although the reduction does not appear to be much, it is estimated that the annual Customs return from tobacco in New Zealand will be depreciated to the extent of about £BO,OOO yearly. The average pipesmoker gets through about four ounces a week, so that under the new prices he will save approximately 9/- a year.

About four months’ notice was given concerning the reduction, and most retailers had very small stocks of pipe tobacco just prior to Saturday. On the other hand, some of the bigger shops had stored large stocks to carry them over the Christmas period, and still have a considerable amount left. They will sell the balance bought under the old excise duty at a loss. On Saturday and earlier in this week wholesale firms had larger orders than usual from retailers, and all pipe tobacco was exchanged under the new excise duty.