HC Deb 26 April 1932 vol 265 cc203-4

asked the Chancellor of the Exchequer whether he is aware that tobacco is being grown in this country; whether he will consider the question of the remission of the excise duty on this tobacco; and what would be the estimated loss to the Treasury of this remission?


The answer to the first part of the question is in the affirmative and to the second in the negative. Tobacco grown in this country already enjoys a preferential reduction of duty of 2s. 2½d. per lb. as compared with imported non-Empire tobacco. To remit the Excise Duty entirely would, on the basis of the present home production, cost about £1,000 per annum only, but the ultimate cost would undoubtedly be very considerable if as a result of the remission the home-produced article were to displace imported duty-paid tobacco to any appreciable extent.