CO129-515-3 Tobacco (Amendment) Ordinance- 1929 28-1-1929 - 11-3-1929 — Page 49

BRITISH-AMERICAN TOBACCÓ CÓMPANY, LimiteĎ,

-2-

The Secretary of State for the Colonies.

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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.