The Evening Star THURSDAY, AUGUST 7, 1873.

Evening Star, Issue 3265, 7 August 1873, Page 2

The Evening Star THURSDAY, AUGUST 7, 1873.

The mercantile raincl throughout the Colony is much exercised in regard to the alteration in the mode of collecting revenue on certain goods; and various estimates are made of the difference that will result from charging Customs duties on valuation instead of on cubic measurement. The Chamber of Commerce of Dunedin was the first to express approval of the principle of ad valorem duties; and it has been followed by the Chamber of Commerce of Christchurch ; the latter adding a rider to its resolution, curiously illustrative of the crude ideas Entertained respecting revenue duties, even by those most habitually brought in contact with the payment of them. This remarkable exhibition of commercial acumen is as follows:—

That whilst approving of ad valorem duties on certain articles, instead of the duty charged as formerly by cubical measurement, this Chamber protests against the new tariff, as the duties proposed to be levied under it are excessive, and would produce an enormous increase of revenue over that which would be derived from the old tariff, if continued.

It will be observed that the protest does not condemn the amount of duty to be levied as unjust, while its approval is only a sort of half-recognition of the principle that imported goods should be taxed in proportion to their values. The objection certainly does say that the proposed duties are excessive, but the main objection is that the new mode will “add enormously to the revenue.” This, if true, necessarily implies that the old system favored a particular class of goods, and that the most expensive \ and, therefore, that the change was imperatively required i» order that justice should be done to all classes of consumers. Much of the outcry against the change is the result of interested, or idle, unreasoning clamor. Those who hold goods the cost of which will be reduced by the change are the most entitled to cry out; although, through motives of policy, they wisely keep their own counsel. The most clamorous are they who fancy they will experience difficulty in realising the extra cost, whieh will be added to certain classes, hitherto barely touched by taxation: notably, the best descriptions of manufactures, The public, the ultimate payers of the tax, will, however, judge differently when the matter is laid fully and fairly before them. From Mr Bathgate’s answer yesterday the following mode of assessing value is to be adopted; —The invoice price of goods is to be taken as a basis and “10 per cent, added to it” to cover cost of transit and other charges—a most moderate estimate, indeed. Nor can the new scale of duties be pronounced as excessive. It is somewhat singular in fact, that many of the articles on which it is proposed to levy 15 per cent, such as oilmen’s stores, will not be materially affected in value, while the great bulk of manufactured goods will he charged 12J and 10 per cent, as' specified. These duties, compared with those leviable on many articles, submitted to without a murmur, are really light. A tax of 10 per cent is always considered moderate. It is less than the duty on tea or sugar, and it is hardly one-twentientli of that chargeable upon spirits or ordinary wines. Sugar pays one penny per pound, which is one-fourth or one-fifth of the first cost, or from 25 to 20 per cent. Tea, sixpence per lb., which varies i from 20 to 50 per cent, on its value, ex duty. Eice is charged one halfpenny per lb., about one-fifth of its average import price, or 20 percent How, in the face of these facta | known to every merchant, an ad valorem duty of 10 to 15 per cent, ; levied upon a notoriously under-esti-mate of the cost on arrival of goods hitherto charged for revenue on cubic

measurement, can be pronounced excessive, none but oddly constituted Chambers of Commerce will be able to arrive at. That the revenue will be increased may be true ; but the presumption is, if so, the burden will lie upon the right shoulders. If the Treasurer could afford to spare the money, a reduction of the duties on articles of necessity, such as those alluded to, would be a better course than any modification of his plan ; but we are of opinion that the change will be so far beneficial as to put on one side any idea of additional taxes in another shape.