12. The increase in the number of dutiable cigarettes seized is accounted for mainly by one large seizure of 176,500 locally manufactured cigarettes which had been exported on drawback to Macao and re-imported. In the latter half of the year it was cheaper to buy duty-paid cigarettes locally than to smuggle in from neighbouring territories, a state of affairs which has probably resulted from the Sino-Japanese hostilities. Old habits die hard, however, and it is rare for a day to pass without a seizure of dutiable tobacco on a river steamer from Canton or Macao.
III.-MOTOR SPIRIT.
13. The revenue received in accordance with the provisions of the Motor Spirit Ordinance shows an increase of $104,214.98, or approximately 15%, as compared with 1936. The rate of duty remained unchanged so that the increase is again attributable to improved economic conditions.
14. Satisfactory arrangements were made with the Director of Air Services during the year for the supply of duty-free petrol to aircraft on departure from the Colony.
IV.-OPIUM.
15. The total amount of prepared opium sold during the year amounted to 22,168.80 taels, an increase of 43% over last year's total. The sales of the luxury brand, Kamshan opium, actually decreased by almost 27% but this decrease was more than offset by a jump of approximately 75% in the sales of Singapore opium.
16. It is believed that a number of factors have contributed to this phenomenal increase. Among them have been the reduction in price referred to in the 1936 report, and the introduction in that year of a slightly different blend which has apparently commended itself to the taste of local consumers. Moreover, the price of illicit opium rose considerably during the year with the result that Government opium now sells at a more competitive price. It is noteworthy that sales increased enormously during the two months immediately following the seizure of illicit opium referred to later in paragraph 20 of this report.
17. A continued decrease in the sales of Kamshan opium is to be expected in view of the fact that this brand is sold only to a limited and decreasing number of registered smokers. The decrease in 1937 is however rather more than anticipated and is probably to be accounted for to some extent by the smokers transferring to the cheaper Singapore brand.
- E.3
12. The increase in the number of dutiable cigarettes seized is accounted for mainly by one large seizure of 176,500 locally manufactured cigarettes which had been exported on drawback to Macao and re-imported. In the latter half of the year it was cheaper to buy duty-paid cigarettes locally than to smuggle in from neighbouring territories, a state of affairs which has probably resulted from the Sino-Japanese hostilities. Old habits. die hard, however, and it is rare for a day to pass without a seizure of dutiable tobacco on a river steamer from Canton or Macao.
III.-MOTOR SPIRIT.
13. The revenue received in accordance with the provisions of the Motor Spirit Ordinance shows an increase of $104,214.98, or approximately 15%, as compared with 1936. The rate of duty remained unchanged so that the increase is again attributable to improved economic conditions.
14. Satisfactory arrangements were made with the Director of Air Services during the year for the supply of duty-free petrol to aircraft on departure from the Colony.
IV.-OPIUM.
15. The total amount of prepared opium sold during the year amounted to 22,168.80 taels, an increase of 43% over last year's total. The sales of the luxury brand, Kamshan opium, actually decreased by almost 27% but this decrease was more than offset by a jump of approximately 75% in the sales of Singapore opium.
16. It is believed that a number of factors have contributed to this phenomenal increase. Among them have been the reduction in price referred to in the 1936 report, and the intro- duction in that year of a slightly different blend which has apparently commended itself to the taste of local consumers. Moreover, the price of illicit opium rose considerably during the year with the result that Government opium now sells at a more competitive price. It is noteworthy that sales increased enormously during the two months immediately following the seizure of illicit opium referred to later in paragraph 20 of this report.
17. A continued decrease in the sales of Kamshan opium. is to be expected in view of the fact that this brand is sold only to a limited and decreasing number of registered smokers. The decrease in 1937 is however rather more than anticipated and is probably to be accounted for to some extent by the smokers transferring to the cheaper Singapore brand.
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