CO129-542-13 Tobacco taxation- suggested scale of duties 23-12-1932 - 25-10-1933 — Page 23

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cigarettes of low grade constitutes the bulk of the

local consumption is out of the question both on

account of the incentive to smuggling which would

result and the serious hardship which the increased

price would inflict on the labouring classes, who

cannot afford even the cheapest brand of British

cigarette. The new tariff therefore leaves the duty

on this tobacco where it now stands, but gives a

preference of approximately 10% on unmanufactured tobacco

of British origin.

3.

In respect of manufactured tobacco the tariff

aims at a preference of 10% for manufacture (only) within

the Empire and a further 10% where the tobacco is both

grown and manufactured within the Empire. In the case

of cigars this is achieved by direct reductions in the

rates of duty for the Empire article. In the case of

smoking tobacco and cigarettes imported ready-made the

duty on the non-Empire article is increased and a

reduction given where both growth and manufacture take

place within the Empire, the rate for Empire manufacture

(only) being untouched. An exception to this policy is

made in respect of Chinese prepared tobacco which is

left at its present figure for the same reasons as in the

case of unmanufactured tobacco.

It is not considered advisable at any rate for the

present, to make provision for intermediate rates of duty

for blends of Empire and other Tobacco manufactured within the Empire.

4.

It will be clear from the foregoing that the

immediate stimulus to British tobacco which this tariff

will