NEW TOBACCO PRICES ARE ANNOUNCED

Chronicle (Levin), 1 November 1947, Page 4

NEW TOBACCO PRICES ARE ANNOUNCED

press Association }

(Per

WELLINGTON, Oct. 31. The Minister of IiidUStfies ahd Commerce, n;on. A, H, Nordineyfcr, made tne following statemexit today in clarincation of the position coacerning the new prices for tobac'ca and Cigarefctes. He said that the new prices for cigaxettes autnorised by tlie -sPrice: Tribynal to retailers will operate oss from Monday, Novemoer 3, and for' tobacco from Monday, November 17. Tne reasomn for the diifereiice in dates is that while the saies tax operates imihediately, the increased duty on imported leaf will not aifect the public untii the manufactured tooauco into which it is made reaches their hands. In the case of cigafett'es tho i&~ creases will be 2d per packet of 10 • in the case of domestic lines and ldl per packet of 10 in the case of imported lineS, with other packs in. proportion. The higher increase in tne case of domestic lines is because such mcrease constitutes compensation for higher costs due to the removal of the subsidy on imported - leaf. in the case of tobacco manufactured in New Zealand, the increase will be 2|d per 2oz packet. Imported. manufactured tooacco is not affected and the price will remain the same as at preSent. The Minister emphasised that old stocKS whicn have not borne tne increased duty or saies tax, must be soid at tne oid prices until such stocks are exhausted. So far as foodstuffs are concerned, from which the saies tax has now been re'moved, amended price orders and price authorisations will be issued by the Price Tribunal as "sooh as possible so as to ensure tbat the full benefit is passed on to the public. Old stocks which have incurred the saies tax may continue to be sold at the old prices but any new stocks coining into the hands of retailers, on which the saies tax has not been paid, must automatically be rediiced in price by the amount of the saies tax previously payable.