Lord HENRYCAVENDISH-BENTINCKasked the Chancellor of the Exchequer whether he is aware that British cigar manufacturers, in order to preserve the 2141W quality and flavour of the cigars made by them, are obliged to import tobacco in a moist condition, and in consequence they pay duties at the rate of 3d. and 4d. higher than the Finance Act intended; and whether he will remove this handicap on an important British industry by the introduction of a more equitable manner of taxing raw tobacco containing more than 14 per cent. of moisture?
§ Mr. HOBHOUSEI am aware that tobacco used for the manufacture of cigars is imported in a moister condition than that imported for other purposes, and that as the manufactured cigar is much drier than the raw material imported, the last increase of duty adds slightly more than 8d. per lb. to the duty charge on cigars. But it cannot be said that this is contrary to the intention of the Finance (1909–10) Act, 1910, as the facts were known to Parliament during the discussion on that measure. My right hon. Friend went into the matter fully in May, 1909, at which time he received deputations from the Cigar Manufacturers' and the Cigar Makers' Union, and came to the conclusion that he could not see his way to grant lower rates of duty in the case of tobacco destined for this particular purpose.