THE NEW TAXES

Evening Post, Volume CXV, Issue 36, 13 February 1933, Page 8

THE NEW TAXES

TOBACCO AND PETROL

COMMENTS FROM DUNEDIN (By Telegraph.) (Special to "The Evening Post.") "• DUNEDIN, This Day.

Private advice has been received in Dunedin j that a tobacco formerly,, retailing at Is 6d a 2oztin has been ad-: vaneedto Is 9a in Auckland, and that other. prices of tobacco nave been advanced correspondingly. The price for the same tobacco,in Dunedin, where cutting has been ■ indulged in. by retailers, has been Is sd, but, tobacconists have been charging Is 7d.' The margin on which moat of the retailers have been -working has been hardly profitable. An attempt was made some months ago to compel selling on a payable basis, but the agreement was quickly upset by the departure from, contract of one of the retailing firms. It is reported to-day that advances1 to bring the Dunedin. prices into line with the Auckland prices were being seriously considered. A rise of 4d in the price: of a 2oz tin of cigarette tobacco would be considered a heavy impost by most smokers who have changed to "h"ome:made cigarettes" since the "wages cuts were imposed. The imported cigarette trade has fallen badly since the depression commenced, and smokers'view the imposition of taxation, on tobacco jnrithout any additional taxation on cigarettes as being an attempt to drive them back to the purchase of "tailor-mades," and thus ensure more revenue from the duties to'the Government, j~. . Dunedin petrol pump proprietors have increased the price of petrol tj 4d a gallon. There were many complaints by motorists, who held, that the petrol companies were imposing on them by asking an additional Id to cover the exchange" increase. However, it is pointed out from a reliable quarter that motorists have no grievance on that score, as the last tax of 2d a gallon was carried;by the petrol .companies themselves and the exchange had increased by 20 per.cent, in tlie meantime.

The Government's expectations of revenue are not likely to be realised, as the taxation in the past has had the effect of bringing about'a heavy slump in petrol importations. Coming at this particular period, the heavy taxation will have another effect on revenue, as motorists in greater numbers will feel it necessary on grounds of economy to discontinue the use of their cars, licences for which! are due oh Juno 1.