TOBACCO PRICES

Wairarapa Times-Age, 13 December 1939, Page 6

TOBACCO PRICES

INCREASE ON CERTAIN LINES. ' Eight lines of tobacco and one line of cigarettes have been increased in price in Masterton in common with other centres. In the case of the tobacco affected, the price of the 2oz. tin is increased by Id and that of the cigarettes by Id per packet of ten. The higher prices were stipulated in a revised price list issued to the tobacco trade, a foreword stating that they were in accordance with the Tobacco Council s decision to maintain the ratio of profit to the retailers. An explanation was given last night in Wellington that when the last price list was issued, following the announcement of the new duties for war purposes by the Minister of Customs. Mr Nash, the usual ratio of profit had not been allowed. It was explained that in the sale of tobacco and cigarettes a fixed ratiq of profit was allowed wholesalers and retailers, and the revision was necessary to maintain the ratio. One of the effects is that the lines of tobacco have increased 4d for two ounces since August. A Masterton retailer pointed out this morning that the explanation given might give a wrong impression as to the real reason for the increases. All tobacco was increased by 2s per lb. some time ago. but when that increase was effected no allowance was made for the additional sales tax payable on the higher price and in order to offset that, it had been decided to increase certain lines of tobacco by Id’per 2oz. tin and one line of cigarettes by Id per packet of ten.