BRITISH-AMERICAN TOBACCÓ CÓMPANY, LimiteĎ,
-2-
The Secretary of State for the Colonies.
49
28. 1. 29.
an ad valorem basis would prove to the advantage both of trade
and revenue in Hongkong. At that time they suggested an ad
valorem rate of 27% the rate which was expected to appear in
the new Chinese Tariff to cover duty and inland tax in China.
On December 5th the new Chinese Tariff was promulgated,
and we understand that provision is made in the Tariff schedule
for an Excise of 324% on all cigarettes, whether imported or
manufactured in China. Imported brands will pay in addition a
duty of 74%, making the total duty and tax on imported brands
From information received from the representative of
British-American Tobacco Company (China) Ltd. in Hongkong, we are
able to state that the total amount of Duty paid by that Company
to the Government in Hongkong for the twelve months ending
31st July 1928 was $606,339.00; this duty was equivalent to
84.35% ad valorem on the wholesale List Price of the goods sold.
In the interests of trade it is very desirable that the
taxation and the price of any grade of cigarette should be the
same in Hongkong as in China.
discouraged.
Transhipment and smuggling are thus
We also attach great importance to the political effect
of Hongkong's example in matters of taxation.