CUSTOMS DUTY

Taranaki Daily News, 31 July 1931, Page 7

CUSTOMS DUTY

GREAT 'INCREASES MADE

tea and sugar pay more

BEER AND TOBACCO HIT

GENERAL PRIMAGE DUTY FRESH LUXURY IMPOSTS By Telegraph.—Press Association. Wellington, Last Night. The following is the official summary of the alterations made in. the Customs tariff by resolutions submitted to larliament this evening:— Increases are made on the following. Cut and plug pipe tobacco, Is 4d per lb. Tea, 3d per lib.

Sugar, Jd per lb. Imported beer, Is per gallon.. Five per cent, ad valorem ns added to the preferential and general rates on the following: Confectionery, apparel, hosiery, carpets, fancy goods, jewellery, plate, tobacco, pipes. Linoleums, gramophone records and cameras, formerly free if British, 2o per cent, if foreign, now 20 per cent. British, 45 per cent, foreign. Ten per cent, is added to the preferential and general tariff rates on raw, dressed and made up furs; also silk piece goods. , Toilet preparations arc increased to 35 per cent. British, and 55 per cent, foreign. • 1 a-l The foregoing are subject to the exfeting surtax of nine-fortieths of the duty, except that the surtax on sugar is reduced to one-twentieth. . . A primage duy of E per cent, is imposed on all goods otherwise free of duty, except on manures, films, “ran, pollard, and goods formerly exempted. Excise duties on cut and plug tobacco are increased by Is 4d per lb, Excise duties on beer are increased by 6d per gallon. , The foregoing increases cease at tne end of next year. . The duty on flour is reduced by 48s per ton and on wheat by Is Id per 'bushel after the end of February next. THE MINISTER’S EXPLANATION

Explaining the effect of the proposed Customs resolutions, the Prime Minister, the Hon. G. W. Forbes, said that when he had last year asked Parliament to increase the duties he had hoped it would not be necessary so soon to ask the people to contribute extra taxation throuo-h Customs. He thought, however, it would he agreed that the Government had adopted this method only as a last Mr. Forbes pointed out that the duties would take effect subject to Section 143 of the Customs Act of 1913 goods (other than warehoused goods). which had been imported at any port in New Zealand would be liable to the old rates. This was in accordance with the procedure adopted last year. It was intended that the increased duties should eease to have effect at the end of 1932, and it would be seen that the resolutions made definite provision for reverting after the end of next. year to the duties hitherto charged. This course was .proposed with the object of relieving the public from the additional duties at the earliest possible date and at the same time leaving to the next Parliament to determine whether any of , the duties now proposed should be continued for a further period. The main object of the proposals was to obtain increased revenue. In framing them the Government had endeavoured as far as possible to limit the number of items affected and to select as far as was consistent with the object in view those articles which were generally regarded as more or less luxury items. DUTY ON TEA REVIEWED. Any classes of goods which did not fall within this category were chosen for special reasons. The Government re-o-retted the necessity to impose a duty on tea and sugar. Regarding the former 'Mr. Forbes pointed - out that the a y er " a-e value in countries of export had fallen since 1928 and cost to the consumer even with the proposed duty added should be less than it was last year. So far as sugar was concerned, Mr. Forbes declared it should be remembered that the proposed duty was less than- that in force in certain other British countries. Referring to tobacco Mr. Forbes said that whereas the duty on cigarettes had been increased during the past la years by nearly MO per cent., that on pipe tobacco had up to the present been advanced just under 20 per cent. Even with the proposed increase the duty on tobacco would be much less than in some other countries, for example Britain. . . ... , It was considered the reimposition oi the duty on silk, artificial silk and imitation silk might give some temporary assistance to New Zealand, wool-giow-ers. It was proposed to. increase the duty on apparel and hosiery in. order that manufacturers in the Dominion of articles made from silk might not be prejudiced ’by the duty on their raw material. It was not considered, the icimposition of the duty on chinawaic, floor coverings and gramophone recoids would inflict any real hardship on any section of the community. MINISTER’S DISCRETION. It was intended to insert in a Bill which would have to be introduced later a clause providing that wherever practicable and desirable the Minister, might under prescribed conditions admit certain goods at the rates hitherto in force when he was satisfied they w ei e to be used only for manufacturing, industrial or similar purposes. It was with reluctance that the Government was compelled to ask Parliament to impose a 3 per cent, primage duty. Mr. Forbes stated that the estimated revenue from Customs and excise duty (excluding beer duty.) under the new scales would for the next financial year total £7,410,000 made up as follows:— Amount to be collected from duties hitherto in force: £6,500,000. Amount expected from new duties on undermentioned articles, including surtax: lea £92,000; sugar, £220,000; tobacco, £lBO,900; silk, etc., £42,500; apparm and 1 hosiery, £86,000; chinaware, etc., £02,000; other items, £47,500; primage duty, £180,000; amount expected to be obtained from beer duty, £050,000. Referring to wheat duties Mr. Forbes said the object of the proposed alteration was, while giving the wheat-grower reasonable protection for his product, to bring down substantially the prices of flour, bread and other wheat products and by reducing wheat prices to assist the poultry farmer and other users of that commodity. It was expected, that the price of flour would be reduced by £2 18s when the new duties

become effective and if this was not done the Government, unless unanswerable reasons could be advanced, would take steps to ensure that such a reduction was made. It had been decided to brin<r the amended duties into foice after the end of February next a the indications were that the current harvest would yield a larger quantity than expected some time ago. When Mr. Forbes had concluded his explanation several members of both Opposition parties as well as Independent members immediately rose to address the chair. The Leader of the Labour Party, Mr. H. E. Holland, said he was sure astonishment would be felt all over New Zealand when the proposals became public. Necessary items were being taxed in spite of the Prime Minister’s talk of a prospective fall in the cost of living. . The Right Hon. J. G. Coates questioned whether full benefits would ,’ie obtained from the proposed alterations. Several members strongly criticised the suggested primage duty of three per cent. DEBATE TO BEGIN WEDNESDAY. PACKED HOUSE HEARS READING. Crowded galleries listened to the prime Minister deliver his 1931 Budget in the House of Representatives tonight. Lady Bledisloe occupied a seat in°Mr. Speaker’s ladies’ gallery. The Prime Minister aas followed with keen attention by members. The estimates were laid on the table and urgency was accorded the passage of the Customs resolutions. The Prime Minister was applauded at the conclusion of the reading of the Budget, which occupied an hour and three-quarters. The Customs resolutions were then submitted to the House and were carried at 12.30 a.m.

Mr. Coates asked the Prime Minister whether he would agree to initiate the Budget debate on Wednesday. Mr. Forbes said he had no objection. _ The House would be able to take private members’ Bills to-morrow and Tuesday.