BRITISH-AMERICAN TÒBACCO CÒMPANY, LIMITED.
-3-
The Secretary of State for the Colonies.
50
28. 1. 29.
Had our China Company's sales in Hongkong been taxed
on an ad valorem basis of 40% for the year 1927-28 the revenue
paid would have been $706,023.
·
instead of $606,339.
The Company would be prepared to face this increased
revenue payment as we are confident that an ad valorem basis of
taxation, even at the high rate of 40%, would have a beneficial
effect on trade.
We are particularly anxious to avoid a per pound basis
of taxation, as such a basis is always a heavy burden on the cheap
cigarettes constituting the bulk of the Eastern trade. For
instance - at the rate of 80 cents a pound, our high grade brands
"Three Castles" and "Gold Flake" would pay $104. a case of 50,000,
while the popular brand "Premier" and all the cheapest grades
would pay $122. a case the cheaper brands containing a greater
weight of cheap tobacco per thousand.
Having regard to these facts and figures we recommend
very strongly that an ad valorem basis of taxation (or duty), at a
rate not exceeding 40%, be introduced in the Colony. The figures
seem to provide the clearest possible evidence that such a basis
would result in a considerable increase in revenue.
Should this system be adopted it would of course be
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