DUTIES ON LEAF TOBACCO

Taranaki Daily News, 3 December 1930, Page 7

DUTIES ON LEAF TOBACCO

PRESENT TARIFF EXPLAINED. MINISTER’S REPLY TO CRITIC. By Telegraph.—Press Association. Wellington, Last Night. A reply was made to-day by the Minister of Customs, the Hon. J. G. Cobbe, to remarks of the chairman of directors of the National Tobacco Company, Ltd. (Mr. Gerhard Husheer) fin reference to the new customs tariff on tobacco. The Minister points' out that when the recent alterations in the tariff were under the consideration of the Government opportunity was taken of so amending the tariff as to promote the use of New Zealand leaf tobacco and at the same time to correct the serious inroads on the revenue which were being made owing to the manufacture locally of tobacco from not only New Zealandgrown leaf, but also imported leaf. “Originally the proposed excise duties of 2s. Bd. per lb. on New Zealand cut tobacco and Is. per lb. on imported leaf (quoted by Mr. Husheer) were designed to encourage the use of New Zealand leaf, and .at the same time to safeguard the revenue,” said the Minister. “These proposals, however, met with strong opposition from local tobacco growers, possibly because they were not fully understood, and Parliament finally decided that the duties should be as follows:-— Import duty on leaf 3s. a lb., excise duty on cut tobacco Is. Bd. a lb. The tariff also provides that the aggregate of the two duties shall not exceed 3s. Bd. a lb. Although it is stated in the article under review that the duties quoted are those originally'proposed, the ff.ct might easily be overlooked that these proposed duties were not passed by Parliament, but that the duties of 3s. and Is. Bd. per lb. are those now effective in respect of imported leaf tobacco and locally manufactured cut tobacco respectively.

“The position with respect to tobacco made wholly from locally-grown leaf is the same to-day as it has been for many years past, namely, that it is liable to excise duty at the rate of Is. Bd. per lb.”