DUTY ON TOBACCO

Wanganui Chronicle, Volume 73, Issue 439, 3 December 1930, Page 7

DUTY ON TOBACCO

STATEMENT BY MINIBTEB [ Per PrcM Association. ] WELLINGTON, Dec. 2. A reply was made to-day by the Mim istcr of Customs (Hon. J. G. Cobbc) to the remarks of the chairman of diree* tors of the National Tobacco Co. Ltd., (Mr Gerhard Hushcer) in reference to the new customs tariff on tobacco. The Minister points out that when the recent alterations ir. the tariff were under consideration of the Government, opportunity was taken of so amending the tariff as to promote the use of New Zealand leaf tooacco, and at the same time to correct the serious inroads <»a revenue which were being made owing to the manufacture locally of tobacco from not only New Zealand grown leaf but also from imported leaf. ’'The originally proposed excise duties of 2s 8d a pound on New Zealand cut tobacco and Is a pound on imported leaf (quoted by Hushccr) were designed to encourage the use of Now Zealand leaf and at the same time to safeguard re* venue,” said tho Alinister. “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: An import duty on leaf of 3s a pound and an excise duty on cut tobacco of Is 8d a pound. The tariff also provides that the aggregate of the two duties shall not exceed 3s 8d a pound. Although it is stated ii. the article under review that the duties quoted are those originally proposed, the fact might easily be overlooked that these proposed duties were not passed by Parliament but that the duties of 3s and Is 8d per pound arc those now effective in respect to imported leaf tobacco and locally manufactured cut tobacco respectively. The position with respect to tobacco made wholly from locally-grown leaf is tho same to-day as it has boon for many years past, i.e., that it is liable to excise duty at the rate of Is 8d per pound.”