asked the Minister for Industry and Commerce if he is aware that the price of pipe tobacco has been increased by 5d. an oz., while, in the Budget speech, an increase of 3d. an oz. was indicated; and if he will give the reasons for the additional charge in this case.
Ceisteanna—Questions. Oral Answers. - Price of Pipe Tobacco.
Arising out of the increase in the duty on tobacco of 5/- per lb. (subject to a rebate of 1/4 per lb. in the case of hard-pressed tobacco) I have authorised an increase of 3d. per oz. in the prices of hard-pressed tobacco and an increase of 4d. per oz. in the prices of other tobaccos.
The effective increases of duty on non-rebated and rebated tobaccos are 4s. 7.6d. and 3s. 0.2d. per lb. respectively. The alteration in prices following the changes in duty was availed of to make certain adjustments in manufacturers' and distributors' margins which had been under consideration and which if had been decided to hold until after the Budget. These changes necessitated increases of 8.4d. and 11.8d. per lb. on non-rebated and rebated tobaccos, respectively. The total increases in retail prices were therefore, 5/4 per lb. and 4/- per lb. or 4d. per oz. and 3d. per oz., respectively.
Apart from these increases in tobacco prices, certain manufacturer whose prices were 1d. per oz. lower than those charged by other manufacturers for tobaccos of similar types were authorised to increase their prices. by 1d. per oz.
The increase in prices, apart from increased duty, was necessitated by higher production and distribution costs.