TOBACCO DUTY

Evening Post, Volume CX, Issue 132, 2 December 1930, Page 13

TOBACCO DUTY

HOME-GROWN ARTICLE

REPLY RY MINISTER

A reply was made to-day by the Minister of Customs (the Hon. J.-G. Cobbe) to the remarks of the chairman of directors of the National Tobacco Co., Ltd. (Mr. Gerhard Husheer) in reference to the now Customs tariff on tobacco. . * j The Minister points out .that when j the recent alterations in the tariff were under the consideration of the Government, the opportunity was taken of sq amending the tariff as to promote the use of New Zealand, leaf tobacco, and at the same timo.to cor-j reot the serious inroads on the revenue which were being made owing to the manufacture locally of tobacco from not only Now Zealand-grown leaf but also from' imported leaf. "The originally-proposed excise duties of 2s 8d per pound on New Zealand cut tobacco and'ls per pound on imported leaf (quoted by Mr. Husheer) wore 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 the-local tobacco growers—possibly because they were not fully understood i —and Parliament finally decided that tho duties should be as follows:— "Import duty on leaf tobacco, 3s per pound. ■ "Excise duty on cut tobacco, Is 8d j per pound. ■' • . I "The tariff also provides that the aggregate of the two duties shall not exceed 3s 8d per pound. ' , "Although it is stated in the article under review that the duties quoted ] are those originally proposed, the fact might easily bo overlooked*that these proposed duties were not passed by J Parliament, but that the duties of 3s and Is 8d per. pound are thoso now effective in respect of imported leaf tobacco and locally-manufactured cut tobacco respectively. "Theposition with respect to tobacco made wholly from locally-grown loaf is the same to-day as it has been for many years past, i.e., that it is liable to excise duty at the rate of' Is 8d per pound." ' . '