§ Sir R. Glynasked the Secretary of State for the Colonies what proposals are before the Legislative Council of Nigeria affecting the export of skins and hides; what is the present tax; what is the suggested tax; what does the increase represent in a percentage on the various types of skins and hides; and to what extent this will impose a burden on the African producer.
Mr. Creech JonesI assume that the hon. Member is referring to the increases in export duty on hides and skins which were introduced at the time of the Nigerian budget proposals 1948–49. The increases were from anad valorem duty of 0.2 per cent. to the following rates per ton: Goatskins £55; Sheepskins £33; Hides £19. The new rates are equivalent, on present prices, to an ad valorem duty of about 11 per cent.
The former duty produced a negligible yield and scarcely met the costs of collection, while the new duty will contribute materially to the revenues of the territory. In view of the considerable increases in the price of hides and skins in the world markets in recent years I am satisfied that this tax is not imposing an undue burden on the African producer at the present time.