Dáil Éireann debate -
Tuesday, 11 May 1965

Vol. 215 No. 8

Financial Resolutions. - Financial Resolution No. 11: Customs and Excise—Tobacco.

Mr. J. Lynch

I move:

(1) That the duty of customs on tobacco imposed by section 20 of the Finance Act, 1932 (No. 20 of 1932), shall, as on and from the 12th day of May, 1965, be charged, levied and paid at the several rates specified in Part I of the Schedule to this Resolution in lieu of the several rates at which the said duty is now chargeable by virtue of subsection (1) of section 17 of the Finance Act, 1964 (No. 15 of 1964).

(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 12th day of May, 1965, be charged, levied and paid at the several rates specified in Part II of the Schedule to this Resolution in lieu of the several rates at which the said duty is now chargeable by virtue of subsection (2) of section 17 of the Finance Act, 1964.

(3) That the rebate on hard pressed tobacco mentioned in subsection (2) of section 17 of the Finance Act, 1940 (No. 14 of 1940), shall, in respect of any such tobacco sold and sent out for use within the State by any licensed manufacturer on or after the 12th day of May, 1965, be at the rate of one pound three shillings and nine pence per pound.

(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.

PART I.

Customs.

	£	s.	d.
Unmanufactured:—
if stripped or stemmed:—
containing 10 per cent or more by weight of moisture the lb.	3	6	0
containing less than 10 percent by weight of moisture ,,	3	13	4
if unstripped or unstemmed:—
containing 10 per cent or more by weight of moisture ,,	3	5	11½
containing less than 10 per cent by weight of moisture ,,	3	13	3½

	Full	Preferential
	£	s.	d.	£	s.	d.
Manufactured:—
cigars the lb.	4	3	0	3	9	2
cigarettes ,,	4	0	6	3	7	1
Cavendish or Negrohead ,,	4	2	6	3	8	9
Cavendish or Negrohead manufactured in bond ,,	4	2	0	3	8	4
other manufactured tobacco ,,	4	0	6	3	7	1
snuff containing more than 13 percent by weight of moisture ,,	4	0	0	3	6	8
snuff not containing more than 13 percent by weight of moisture ,,	4	2	6	3	8	9

PART II.

Excise.

	£	s.	d.
Unmanufactured:—
containing 10 per cent or more by weight of moisture the lb.	3	4	10½
containing less than 10 per cent by weight of moisture ,,	3	12	1
Manufactured:—
Cavendish or Negrohead manufactured in bond ,,	3	6	10½

Mr. T.F. O'Higgins

Would the Minister agree that it would be only just that some exclusion be made in respect of hard pressed tobacco, which I call plug tobacco? If he does so agree, could he indicate in what way it could be excluded from this duty? If it cannot be done at present, I hope it can be considered at a later stage when I may move an appropriate amendment.

Mr. James Tully

I should like to add my voice to that appeal. Last year, hard plug was excluded and I submit the Minister would be well advised to except the old people who use hard plug. The amount involved would not be so significant because not many use hard plug.

Mr. J. Lynch

I do not think the Deputy was listening to my Budget Statement. I said that of all pipe tobacco smoked, 85 per cent is hard pressed.

Mr. James Tully

I thought the Minister made a mistake.

Mr. J. Lynch

I do not think 85 per cent of pipe smokers are hard pressed—all poor men. Many of them can very well afford it.

Mr. T.F. O'Higgins

One hundred per cent of them will be hard pressed now.

Mr. J. Lynch

All pipe smokers are wealthy people. It would not be possible to make an exclusion. The old man who smokes three ounces a week would have an extra cost of about 1/- a week. As I mentioned in my Budget Statement, I have given an extra rebate on hard pressed tobacco in order to depress the increase by a penny on hard pressed tobacco as compared with 5d. on flaked tobaccos.

Mr. James Tully

Surely the Minister is not suggesting that a pensioner who gets an extra 10/- a week after August will be able to buy the same amount of tobacco at the new duty rates in the meantime.

Mr. T.F. O'Higgins

The duty is being imposed now and the old age pensioner who survives until 1st August next will have to pay the extra amount this duty is aimed at. I am sorry to hear the Minister, so soon after becoming Minister for Finance, deducting that this imposes only 1/- a week on the average person. A shilling a week to the Minister or myself, pipe smokers, may be very little but to an old age pensioner between now and August, it will amount to 10/-. Will the Minister give them all a bonus of 10/- on 1st August? Administratively, it would be possible. Leave the duty on but give a double 10/- on 1st August.

Donnchadh Ó Briain

Very generous all of a sudden.

Mr. T.F. O'Higgins

If I am in order, I shall move an amendment on the Finance Bill.

Resolution put and agreed to.