THE BEER TAX.

Waikato Times, Volume XII, Issue 957, 10 August 1878, Page 2

THE BEER TAX.

Tiia following is the report m full of the Colonial Treasurers speech m re theßeere Tax:— I have referred to the relief given to the brewers by the remission of one-half the sugar duties. The quantity of sugar returned as used m the breweries of the colony m 1876 was 2,271,6q01b5., yielding m duty £9,465. Supposing the same quantity consumed, the relief to this industry is £4,732. 'lhe total duty paid by the brewers under the existing traffic on existing materials — malt, hops, and sugar — is about 2s 9d per hogshead. If the average value per. hogshead be £5, the duty paid but slightly exceeds 1\ per cent, and with the remission on sugar the duty Avill be reduced to less tnan 2 per cent. Now, we are able to compare the position of the beer-drinkers m the colony with those of the mother country, where the different taxes on materials and licences constitute a duty of from 18 to 23 per cent, on the trade prices of beer. If the position were reversed, the colonial consumer would have no right to complain, for the wages-test would still be m his favour. At present he almost escapes taxation on this article. The amount of duty paid by the brewers m malt m 1876 was £2,654, and on hops £4,832. Now, the importations on malt are declining — '£1,503 have only been collected under this head last year, andon hops £4,136 ; and m a few years it is probable that the whole of the malt used will be produced within the colony. The production of colonial hops is also progressing, so that the duty derived from the importation of these articles is not likely to be maintained. It will thus be seen that from all but a revenue point of view these facts are satisfactory. Well, sir, we think the beer-drinker will concur m the great moderation of our proposals, if we ask him to contribute a beer tax of l£d a gallon. It may be said that the consumers will not pay the tax at all, but that it will come out of the profits of the brewer or the retailer. It is only m accordance with sound economic doctrines to suppose that all such changes ultimately affect the consumer only, and I do not wish to reason away the conclusion. How, then, will he stand ? He may certainly save his tax by drinkinoso much less beer, but as the habit ol indulgence is stronger than self-denial, thore is no ground to antioipate m that respect an appreciable falling off. The tax on beer will then stand at 6i per cent., m addition to the 2 per cent, "at present contributed indirectly on the materials, or a small duty of 8} per cent.— a percentage considerably less thau one-half

■he duty received from the same source rom the people of England. I estimate '1 e°.onsump tion m the colony at 5,000,000 Gallons, though there is some ground for ihinking it may be more, but as our ,tafcis<acS'-arSHncbmplete, I have taken ihelowest calculation. This quantity, at L£d a gallon, would yield a revenue of G3l,2soj^pr, m round numbers, B3o,oooj§| We propose to allow the krew.ersjS; drawback of the duty on all beer ' esfpdrted £/fs6ra. the colony. The mode 6ifMp6llepM6h will be arranged to »ive the l'easj^lrouble to the payer of the tax'^.Thejfgystem of stamps prevailing m the TJhiteu States recommending itself by its simplicity and directness, the Customs department will assume control of this item of inland revenue, and I do not expect any considerable increase to the staff m consequence. I submit this tax to the committee as one which, wliile touching with great lightness the contributor, .is calculated to strengthen, as it will augment the finance of the colony.