INDIA—THE DUTY ON SALT. (Hansard, 27 June 1853)

§ The MARQUESS of WESTMINSTER
presented a petition from the inhabitants of Northwich, praying that in any arrangements for the future government of India, provision may be made to permit English salt to be imported into all' parts of British India upon the same terms and conditions as other goods and manufactures. The noble Marquess said, the subject of the petition was one in which the inhabitants of the county with which he was connected felt the deepest interest. Its great importance was much increased at this moment from its being intimately connected with the subject now under discussion in the other House. In the county with which he was connected there were 5,000 ablebodied men constantly employed in the salt-works. The average quantity of salt annually extracted from the rock and by means of drying was 600,000 tons. Great as this quantity was, it might be much increased if facilities were afforded for carrying the article to distant countries where it was required, and from which an interchange of commodities might be obtained. What prevented this most natural interchange of commodities in the case of India? The duty of 61. 16s. per ton upon the importation of salt. The duty actually amounted to twenty times 780 the value of the article itself. It was impossible to understand the motive for such a policy: it was disadvantageous in every way. If the advantage from opening the trade would be great to the commercial gentlemen of Lancashire and Cheshire, it must be much more so to the unfortunate Hindoo, who during eight months of the year lived entirely on rice, and during the other four months on any other vegetable matter he could obtain. Salt to the Hindoo was an absolute necessary of life, and it saved him from disease and death. Notwithstanding the importance of a sufficient and pure supply to the people of India, the policy pursued by the Government of India had introduced a system of adulteration which was utterly incredible. It was well known that the impurities attaching themselves to salt amounted to about 13¼ to 1001b. But in the salt sold wholesale by the Company the impurities increased to 185 parts of the ton; and it had been estimated that of the salt sold in retail the adulteration was not less than one-half. From this cause the salt sold to the natives was so distasteful to them that, previous to using it, they were obliged to resort to a process of purification. The policy of the Company was bad in every respect; it not only interfered with the consumption of the article, but it led to the most immoral proceedings. Revenue is obtained at too dear a rate, when purchased at the cost of a nation's morality. The officials of the revenue were liable to be corrupted and bribed; and it was known that three-fourths of the salt used in the north-west part of Bengal were smuggled. If free trade was of any use, it ought to be applied generally, and no exceptions allowed. Reductions of the duties on other articles were frequently made in India; and what the petitioners prayed for was, the assistance of their Lordships to pro-cure a reduction of the import duty on salt. The petitioners, he said, prayed that their Lordships would give the subject their earnest consideration, believing that it would confer important blessings upon millions by greatly extending trade and manufactures in this country, and providing the people of India with a plentiful and pure supply of one of their chief necessaries of life.

§ EARL GRANVILLE
did not complain of the petition being presented, for it was most desirable that any portion of the people feeling a grievance should have an opportunity of representing it; and the case 781 was still stronger when the grievance complained of affected the interests of Her Majesty's subjects in a distant part of the world. With regard to the tax on salt, he had no hesitation in admitting that it was objectionable, and that it caused severe distress to a certain part of the natives; but, admitting its objectionable character, and the possibility of diminishing its bad effects, he was bound to say he did not think the duty could be abolished altogether without substituting for it some other tax. All the recent legislation which had taken place on the subject in India, had been enacted for the purpose of encouraging the importation. The returns for the last six months showed that there had been an amount of salt imported into India from Great Britain during that period equal to that imported in any previous 12 months. He must add, he feared, that, if the duty were entirely abolished, the result would be to exclude British salt from India.

§ LORD WHARNCLIFFE
thought that any person who looked closely into the details of the question must be satisfied of the truth of the proposition, that the repeal of the duty on salt, and the substitution of a liberal system of import duties, would add materially to the revenue of the Government in India, and would greatly extend the trade between England and that country. This view was confirmed by the paper which had been laid before Parliament by the East India Company. In the province of Bengal three methods of supply existed. Salt was manufactured in Bengal by Government advances and by contracts for delivery to the Government at fixed prices. It was also imported, and there existed one private manufactory working under the supervision of the Excise. In the North Western Provinces the article was imported from the lower provinces of Bengal and from Lambheer Lake, in Raj-pore, subject to Customs duties on the frontier. In Madras it was manufactured on Government account. In Bombay it was supplied by private manufactories, acting under the supervision of the Excise, and by importation, both being subject to an equal duty. In the Punjaub the native salt mines were worked on an Excise duty. The financial results of these several systems were illustrative of their value. The total revenue was about 1,700,000l. In Bengal, where the supply was chiefly a Government monopoly, the revenue in 1839–40 was 1,619,418l.; in 1849–50 it was 1,610,738l. In Madras, 782 where the monopoly was complete, the revenue in 1839–40 was 338,242l., and in 1849–50 it was 383,331l. In the North Western Provinces, where the revenue was derived solely from the Customs duties, it amounted in 1839–40 to 269,051l., and in 1849–50 to 537,981l. In the Presidency of Bombay, where the revenue was derived partly from the Customs and partly from the Excise, it was in 1839–40, 127,220l., and in 1849–50 it was 215,759?. These figures completely established the fact that where the supply of salt was left to private enterprise the result was greater to the public revenue; and he was convinced that it was still more advantageous to the natives of the country.