HC Deb 03 May 1904 vol 134 cc248-9
MR. LOUGH (Islington, W.)

I desire to ask the Chancellor of the Exchequer a Question, of which I have given him private notice, with reference to the tobacco duty, viz., if it is the practice to refund the Customs duty on stripped stalks; how those stalks are disposed of, and what is the estimated revenue from the additional duties on cigars and cigarettes?

MR. AUSTEN CHAMBERLAIN

The hon. Member does not seem quite to understand the point. Duty is not at present returned upon stalks of tobacco stripped in this country, unless they have been ground into snuff and exported or deposited in a bonded or King's warehouse. Drawback is then allowed at the rate of 3s. 1d. for each lb. of the offal snuff, according to a certain standard. But the ground stalks fall much below the standard fixed, and it requires therefore more than 1 lb. of stalks to produce 1 lb. of standard offal. It appears that the actual drawback value of stalks as offal does not average more than about 2s. 7d. a lb. The offal snuff is generally denatured and used for the production of nicotine, sheep-dip, blight powder, etc. The estimate of the amount, to be received from the additional duty on cigars is £45,000, and from that on cigarettes £20,000. I may add I have received some evidence showing that the grinding of the stalks before they are used for nicotine and other purposes renders them less valuable than they would be unground.