HC Deb 06 June 1939 vol 348 c207
48. Mr. Denville

asked the Chancellor of the Exchequer what is the basis of extraction of sugar on which the new scale of Customs Duty on raw sugars is based, and in particular what is the normal yield in good refining practice as estimated by His Majesty's customs of sugar and molasses from a cwt. of raw sugar polarising exceeding 96 degrees and not exceeding 97 degrees, on which duty is chargeable, at the full rate, of 10s. 5.4d., and what would be the drawback payable on such sugar and molasses when exported; and what is, in the case of such sugar, the amount allowed per cwt. to give effect to the principle that the refiner should be recouped for expenses involved in payment of duty on his raw material?

Sir J. Simon

As the answer is necessarily technical and elaborate, and requires study for its complete comprehension, I will, with my hon. Friend's permission, circulate it in the OFFICIAL REPORT.

Following is the answer:

The basis of the new full rates of Customs duty on raw sugar is the scale contained in the First Schedule to the Finance Act, 1901, and repeated in the Sixth Schedule to the Sugar Industry (Reorganisation) Act, 1936, representing the estimated yield of refined sugar extractable in ordinary refining practice from raw sugar at the various degrees of polarisation, including sugar at 96–97 degrees of polarisation. Drawback on the exportation of sugar refined from raw sugar polarising at 96–97 degrees on which duty was paid at the new full rate, is payable at the rate of 11s. 8d. per cwt., and on the exportation of molasses produced in the refining of such sugar, at rates varying from 2s. 9½d. to 8s. 9d. per cwt. according to the sweetening content of the molasses. The amount allowed in the 1901 scale to give effect to the principle that the refiner should be recouped for expenses involved in the payment of duty on his raw material cannot be stated, as the detailed calculations on which that scale was based are not now available.