§ Mr. JOSEPH KING (on behalf of Sir Howell Davies)asked the Under-Secretary for India if any advice had been tendered to the Indian Council at Calcutta recommending a modification of the proposed duties on tobaccos and cigarettes which, if confirmed at the proposed level, would mean throwing out of employment many hundreds of persons in Bristol and Liverpool?
Mr. GIBBS alsoasked the Under-Secretary whether he can see his way to make representations to the Government of India to the effect that the proposed increase in the import duties on tobacco and cigarettes, in addition to being prohibitive and unscientific from a revenue point of view, will inflict hardships on those engaged in the industry in this country in Bristol and elsewhere?
§ Mr. MONTAGUThe Secretary of State has been in communication with the Government of India on the subject. The Government of India have fixed the rates with reference to the necessity they are under to provide from other sources revenue to meet the loss of opium revenue. They report that they do not consider that the duties will seriously affect consumption as a whole. The Secretary of State will carefully watch the effect of the new duties, and has directed the Government of India to submit monthly Returns of imports of tobacco under classified heads.
§ Mr. KINGMay I ask if the hon. Gentleman is aware that 90 per cent. of these imported cigarettes are smoked by British soldiers in India, and that it is calculated that the amount of the duty payable indirectly by them will be over £250,000 sterling per annum?
§ Mr. MONTAGUNo, I was not aware of that.
§ Mr. KINGasked the Under-Secretary what are the new duties on tobacco imported into India, what sum the new duties are estimated to produce beyond the revenue produced by the old duties, and whether a counterbalancing Excise duty on native-produced and manufactured tobacco will be imposed?
§ Mr. MONTAGUThe duties are: On unmanufactured tobacco, 2s. the lb.; on cigars, 3s. 4d. the lb.; on cigarettes, 2s. 8d. the lb., with a minimum of 6s. 8d. the 1,000; on other manufactured tobacco, 2s. 2d. the lb. The net additional revenue which the duties are estimated to yield is £394,000. The Government of India have undertaken to examine without delay the question of levying corresponding taxation on native tobacco. They do not, however, consider that there is effective competition between the native and the imported product.
§ Mr. KINGIn view of the discharges from employment in this trade already, will the hon. Gentleman consider the advisability of immediately imposing a countervailing Excise duty?
§ Mr. MONTAGUI have already told the hon. Member that the Government of India is considering the possibility or advisability of levying a corresponding Excise duty.
§ Mr. JAMES HOPEWhy should there be any doubt about levying an Exise duty in the case of India when there has been no doubt whatever about levying an Excise duty in the case of Irish tobacco?
§ Mr. MONTAGUThere is considerable doubt in the mind of the Government of India as to whether native tobacco in any way competes with the imported tobacco.
§ Mr. JAMES HOPEDoes Irish tobacco interfere with the imported product?
§ Mr. RICEasked the Under-Secretary on what date the proposed new duties on cigarettes, imported into India, comes into force; and whether it is intended to impose an Excise duty equal to the import duty!
§ Mr. MONTAGUThe duties took effect from 25th February, the date when the Tariff Bill was introduced into the Legislative Council. With regard to the second part of the question, I have already said that the Government of India have undertaken to consider the matter.