Second Schedule—(Sugar, etc.) (Hansard, 3 July 1939)

§ Captain Crookshank

I beg to move, in page 31, line 32, column 3, to leave out "6 10.8," and insert "7 0.4."

This Amendment deals with the Sugar Duty. The change it involves is in the nature of an adjustment of the preferential margin. It must be known to hon. Members that the preferential margins on Empire sugar which are stabilised are those set out in the Finance Act of 1928 and they are repeated in the first column of Part I of this Schedule. The duties on Empire sugar are derived from the duty on foreign sugar by deducting the stabilised margins. Since the modern scheme of sugar duties going back to 1901 there has not been any distinction between the duty at polarisation 98–99 degrees and duty at 99 degrees in the case of the duties on foreign sugar. Since 1928 the duty on Empire sugar at 98–99 degrees has been graduated with the duties on Empire sugars at lower polarisations, and the maintenance of this scheme has led to the need for an adjustment at this polarisation. The result of making a calculation in that way has been that the duty in the Bill as printed is really 1.6d. a cwt. higher on the polarisation 98–99 than the strictly proportionate rating would require. We propose to make the adjustment by reducing the Customs preferential duty at this level, and Excise automatically follows. The cost of this concession will be £120,000 this year and £140,000 in a full year.

Those who study these extremely technical matters will recognise that this is a readjustment which it is proper to make and if the Amendments on the Paper are adopted the reduced rates of duty which they provide will have effect as from 5 o'clock p.m. on the 25th April 1034 so that traders who have paid duties on the higher rates provided in the Budget Resolutions will be entitled under Section 1 (1)(d) of the Provisional Collection of Taxes Act, 1913, to repayment of the difference between the duty paid under the Budget Resolution and the duty payable at the lower rates now proposed.