§ Lord BALCARRES (for Mr. Harmood-Banner)asked the Under-Secretary of State for India whether he will take steps to remove the Excise duty on cotton cloth produced in India now that an agreement has been come to with the Indian Council that it is not desirable, to impose Excise duty on cigarettes and cigars made in India, so as to make the principle in both cases uniform?
§ The UNDER-SECRETARY of STATE for INDIA (Mr. Montagu)No such agreement as is suggested in the question has been come to. The Government of India is considering the question of protecting the revenue by means of an Excise duty on cigars and cigarettes produced in India. It is not proposed to interfere with the Excise duty on Indian cotton mills.
§ Sir GEORGE KEMPIf the question is considered again will the hon. Gentleman take steps to take off the Import duty on cotton goods going into India at the same time?
§ Mr. MONTAGUThe whole fiscal system of India is designed to produce revenue, and if the hon. Gentleman has any suggestion to make, perhaps he will put down a question.
§ Lord BALCARRES (for Mr. Harmood-Banner)asked whether any inquiry has been made as to the incidence of the new duty on silver on producer or consumer; and whether there is any official information showing that the new duty will seriously affect the shipment of Indian cloth to China, and add to the handicap already imposed on Indian cloth producers by the Excise duty now existing?
§ Mr. MONTAGUThe Secretary of State has watched the movement of the silver market since the new duties were announced, and he finds that the trade is disposed to think that the slight fall in the price of the metal which at first occurred will not be permanent. The answer to the second part of the question is in the negative. The Secretary of State will continue to watch the effect, if any, of this duty on Indian trade.