§ 5.0 P.M.
§ I have one or two alterations which I propose shall be made in certain taxes. The first is in relation to the Cocoa Duty. I had no idea that cocoa was so exhilarating a beverage as the cheers of hon. Members would seem to indicate. There is no doubt at the present moment there is an element of protection in this duty, and I may in a sentence tell the Committee what it is due to. Chocolate contains ingredients which, separately, are either not taxable at all or are taxed at a lower rate than manufactured cocoa. But still chocolate is taxed at the same rate as manufactured cocoa. For instance, you may have milk in chocolate that is not dutiable at all, and you may have sugar in it that is dutiable at a much lower rate than cocoa. Still, chocolate per pound is liable to the same rate as manufactured cocoa without any of these ingredients. The result is that there is a protective flavour in chocolate. On the other hand, there is no drawback on the export, so that, on the whole, the manufacturer of cocoa and chocolate in this country is handicapped by the present arrangement. I think he ought to feel very grateful to hon. and right hon. Gentlemen opposite for removing that embarrassment to his trade. What we propose is to put cocoa on exactly the same footing as any other industry in this country. That involves subjecting chocolate to duty, according to its ingredients, and giving the usual drawback on export. The loss of duty to the Revenue will be £20,000. The loss in drawback will be £25,000—a loss to the Revenue in all of £45,000.