Dáil Éireann debate -
Wednesday, 8 Nov 1939

Vol. 77 No. 7

Financial Resolutions. - Financial Resolution No. 4—Customs and Excise.

Mr. O Ceallaigh

I move:—

(1) That the duty of customs on tobacco imposed by Section 20 of the Finance Act, 1932 (No. 20 of 1932), shall, in respect of tobacco imported on or after the 9th day of November, 1939, be charged, levied, and paid at the several rates specified in Part I of the Schedule to this Resolution in lieu of the rates at which the said duty is now chargeable by virtue of Section 9 of the Finance Act, 1939 (No. 18 of 1939).

(2) That the duty of excise on tobacco imposed by Section 19 of the Finance Act, 1934 (No. 31 of 1934), shall, as on and from the 9th day of November, 1939, be charged, levied, and paid at the several rates specified in Parts II and III of the Schedule to this Resolution in lieu of the rates at which the said duty is now chargeable by virtue of Section 9 of the Finance Act, 1939 (No. 18 of 1939).

(3) That sub-sections (2) to (5) of the said Section 19 of the Finance Act, 1934, shall apply to tobacco which is chargeable with the duty of excise imposed by sub-section (1) of that section at a rate specified in Part II or Part III of the Schedule to this Resolution, and for the purpose of such application references in the said sub-sections (2) to (5) of the said Section 19 to Parts I and II respectively of the Sixth Schedule to the said Finance Act, 1934, shall be construed and have effect as references to Parts II and III respectively of the Schedule to this Resolution.

(4) It is hereby declared that it is expedient in the public interest that this Resolution shall have statutory effect under the provisions of the Provisional Collection of Taxes Act, 1927 (No. 7 of 1927).

SCHEDULE.

DUTIES ON TOBACCO.

CUSTOMS—PART I.

UNMANUFACTURED:—
If Stripped or Stemmed:—		s.	d.
Containing 10 lbs. or more of moisture in every 100 lbs. weight thereof...	the lb.	13	4½
Containing less than 10 lbs. of moisture in every 100 lbs. weight thereof	,,	14	10½
If Unstripped or Unstemmed:—
Containing 10 lbs. or more of moisture in every 100 lbs. weight thereof	,,	13	4
Containing less than 10 lbs. of moisture in every 100 lbs. weight thereof	,,	14	10

		Full	Preferential
MANUFACTURED, viz.:—		s.	d.	s.	d.
Cigars	the lb.	25	5	21	2?
Cigarettes	,,	20	6	17	1
Cavendish or Negrohead	,,	19	6	16	3
Cavendish or Negrohead Manufactured in Bond	,,	16	11	14	1?
Other Manufactured Tobacco	,,	16	11	14	1?
Snuff containing more than 13 lbs. of moisture in every 100 lbs. weight thereof	,,	16	1	13	4?
Snuff not containing more than 13 lbs. of moisture in every 100 lbs. weight thereof	,,	19	6	16	3

EXCISE.—PART II.

MANUFACTURED, VIZ.:—		s.	d.
Containing 10 lbs. or more of moisture in every 100 lbs. weight thereof	the lb.	12	6
Containing less than 10 lbs. of moisture in every 100 lbs. weight thereof	,,	13	10
MANUFACTURED, VIZ.:—
Cavendish or Negrohead Manufactured in Bond	,,	16	3

PART III.

UNMANUFACTURED, VIZ.:—		s.	d.
Containing 10 lbs. or more of moisture in every 100 lbs. weight thereof	the lb.	11	4
Containing less than 10 lbs. of moisture in every 100 lbs. weight thereof	,,	12	7
MANUFACTURED, VIZ.:—
Cavendish or Negrohead Manufactured in Bond	,,	14	8

Mr. Dillon

Could the Minister outline now, for the information of the House, approximately what price this Resolution will cause to be charged hereafter for a package of ten cigarettes which is at present selling for 6½d. and for half a quarter of twist tobacco which is at present selling at 1/5?

Mr. O Ceallaigh

It is expected that the increase in the tax will lead to a penny increase on the package of 20 cigarettes and to 2d. an ounce on the plug tobacco.

Mr. Dillon

So it means 4d. on the half-quarter of tobacco. For the ordinary countryman who buys twist tobacco that is an appalling charge. I do not mind about the cigarettes but for the poor fellow who buys half a quarter of tobacco for his pipe, 4d. is terrible.

General Mulcahy

Can the Minister say what examination of the situation has been made that assures him that this increased tax will actually bring in the revenue that he estimates? He intimated in his speech that from an examination of the situation he did not think that this tax would cut down the consumption of tobacco.

Mr. O Ceallaigh

All the usual sources have been tapped for information and I have consulted with all the officials who have been dealing with matters of this kind for a considerable period and I am satisfied with the estimates they have given me.

Mr. Cosgrave

The Minister stated in reply to Deputy Dillon that he anticipated that the extra cost on 20 cigarettes would be 1d. One penny was the figure he gave. An extra duty of 8d. a lb. was placed on tobacco in May last and as a result of that extra 8d. there was an additional penny placed upon 20 cigarettes. I do not want now to push the Minister beyond his inquiries but surely the two things do not seem to fit in to one another. By reason of an addition of 8d. in the lb. on tobacco, cigarettes went up by a 1d. on 20. Now that we are placing 2/8 on it, surely more than an extra 1d. will be charged.

Mr. O Ceallaigh

Of course, it naturally follows that once a tax is put on you have to take into account the extra amount that will go on for the various services. I thought it would go up at least 1d. Perhaps I am understating. Perhaps it would be more than that. I would not like to discuss the Resolution now. If the Deputy might ask me the question again I will have more precise information

Mr. Cosgrave

As far as the 2/8 is concerned, that is 32 pence and as there are 16 ounces of tobacco in a lb. it follows, according to Cocker, that there will be 2d. an ounce extra on the ordinary tobacco. I suppose we are not disturbing Cocker's calculations.

Question put.

The Committee divided: Tá, 64; Níl, 49.

Tá

• Aiken, Frank.
• Allen, Denis.
• Bartley, Gerald.
• Beegan, Patrick.
• Boland, Gerald.
• Boland, Patrick.
• Bourke, Dan.
• Brady, Brian.
• Brady, Seán.
• Breathnac, Cormac.
• Breen, Daniel.
• Breslin, Cormac.
• Buckley, Seán.
• Carty, Frank.
• Childers, Erskine H.
• Cooney, Eamonn.
• Corry, Martin J.
• Derrig, Thomas.
• De Valera, Eamon.
• Flynn, John.
• Flynn, Stephen.
• Fogarty, Andrew.
• Fogarty, Patrick J.
• Friel, John.
• Fuller, Stephen.
• Gorry, Patrick J.
• Hogan, Daniel.
• Humphreys, Francis.
• Kelly, James P.
• Kelly, Thomas.
• Kennedy, Michael J.
• Killilea, Mark.
• Kissane, Eamon.
• Little, Patrick J.
• Loughman, Francis.
• Lynch, James B.
• McCann, John.
• McDevitt, Henry A.
• McEllistrim, Thomas.
• MacEntee, Seán.
• Maguire, Ben.
• Meaney, Cornelius.
• Moore, Séamus.
• Morrissey, Michael.
• Moylan, Seán.
• Mullen, Thomas.
• Munnelly, John.
• O Briain, Donnchadh.
• O Ceallaigh, Seán T.
• O'Grady, Seán.
• O'Loghlen, Peter J.
• O'Reilly, Matthew.
• O'Rourke, Daniel.
• O'Sullivan, Ted.
• Rice, Brigid M.
• Ruttledge, Patrick J.
• Ryan, James.
• Ryan, Robert.
• Smith, Patrick.
• Traynor, Oscar.
• Victory, James.
• Walsh, Laurence J.
• Walsh, Richard.
• Ward, Conn.

Níl

• Belton, Patrick.
• Bennett, George C.
• Benson, Ernest E.
• Brasier, Brooke.
• Broderick, William J.
• Browne, Patrick.
• Burke, Patrick.
• Byrne, Alfred.
• Byrne, Alfred (Junior).
• Coburn, James.
• Cole, John J.
• Cogan, Patrick.
• Corish, Richard.
• Cosgrave, William T.
• Costello, John A.
• Curran, Richard.
• Daly, Patrick.
• Davin, William.
• Dillon, James M.
• Dockrell, Henry M.
• Doyle, Peadar S.
• Esmonde, John L.
• Everett, James.
• Fagan, Charles.
• Hannigan, Joseph.
• Hickey, James.
• Hughes, James.
• Hurley, Jeremiah.
• Keating, John.
• Keyes, Michael.
• Lynch, Finian.
• MacEoin, Seán.
• McFadden, Michael Og.
• McGilligan, Patrick.
• McGovern, Patrick.
• McMenamin, Daniel.
• Mongan, Joseph W.
• Mulcahy, Richard.
• Murphy, Timothy J.
• Nally, Martin.
• Norton, William.
• O'Higgins, Thomas F.
• O'Neill, Eamonn.
• O'Sullivan, John M.
• Pattison, James P.
• Redmond, Bridget M.
• Reidy, James.
• Reynolds, Mary.
• Ryan, Jeremiah.

Tellers:—Tá: Deputies Smith and Seán Brady; Níl: Deputies P.S. Doyle and Bennett.

Question declared carried.