HC Deb 12 May 1936 vol 312 cc184-5
46. Mr. LEONARD

asked the Chancellor of the Exchequer whether he is aware of the difference in the rates of drawback on the re-export of Empire and foreign tobaccos, respectively, amounting to approximately ld. per lb. in favour of the foreign tobacco; that, after allowing for wastage, the drawback on foreign tobacco exceeds the duty paid; and whether he will take immediate steps to rectify the position by which foreign tobacco re-exported receives a subsidy from the taxpayer thereby injuring re-exports of Empire tobacco?

The CHANCELLOR of the EXCHEQUER (Mr. Chamberlain)

I have noted the hon. Member's suggestions, but I have no reason to suppose that re-exports of Empire tobacco are being materially injured by difference in the rates of drawback on Empire and non-Empire tobaccos.

Mr. LEONARD

Is the right hon. Gentleman aware that the duty and the drawback on Empire tobacco balance, and can such a balance not be obtained with regard to foreign tobacco, and so save a loss to the Exchequer which is estimated at £200,000, especially in view of the fact that the right hon. Gentleman has just increased the duty on tea?

Mr. CHAMBERLAIN

According to my information the hon. Member's suggestion is not entirely accurate.