Financial Resolutions. - Financial Resolution No. 2: Customs and Excise — Tobacco. – Dáil Éireann (18th Dáil) – Tuesday, 11 Apr 1967

Minister for Finance (Mr. Haughey)

I move:

(1) That, subject to the next paragraph of this Resolution, 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 April, 1967, 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 specified in Parts II and III of the Third Schedule to the Finance Act, 1966 (No. 17 of 1966).

(2) That —

(a) this paragraph applies to manufactured tobacco which was manufactured in, and consigned from, the United Kingdom and was manufactured therein from materials other than materials falling within Tariff Heading number 24.02 in the Schedule to the Imposition of Duties (No. 159) (Customs Duties and Form of Customs Tariff) Order, 1966 (S.I. No. 132 of 1966),

(b) the customs duty on tobacco mentioned in paragraph (1) of this Resolution shall, as on and from the 12th day of April, 1967, and before the 1st day of July, 1967, be charged, levied and paid on manufactured tobacco to which this paragraph applies at the several rates specified in Part II of the Schedule to this Resolution in lieu of the several rates specified in Part I thereof and shall, as on and from the 1st day of July, 1967, be charged, levied and paid on manufactured tobacco to which this paragraph applies at the several rates specified in Part III of the Schedule to this Resolution in lieu of the several rates specified in Parts I and II thereof.

(c) the provisions of section 8 of the Finance Act, 1919, shall apply to the duties imposed by this paragraph —

(i) with the substitution of "the area of application of the Acts of the Oireachtas" for "Great Britain and Ireland" and as though the expression "manufactured tobacco" in the first column of the Second Schedule to that Act did not include manufactured tobacco to which this paragraph applies,

(ii) as though manufactured tobacco to which this paragraph applies, together with the descriptions of such manufactured tobacco in Part II or III (as may be appropriate) of the Schedule to this Resolution, were mentioned separately in the said first column and the appropriate preferential rates specified in that Part were mentioned in the second column of the said Second Schedule opposite the mention of those goods in the first column thereof, and

(iii) subject to the last paragraph (beginning with "Goods shall not be deemed") of subsection (1) of the said section 8 being disregarded,

(d) in this paragraph the expression "the United Kingdom" means Great Britain, Northern Ireland, the Isle of Man and the Channel Islands,

(e) the expression "hard pressed tobacco" mentioned in Parts II and III of the Schedule to this Resolution and the next subparagraph of this paragraph has the same meaning as it has in section 17 of the Finance Act, 1940 (No. 14 of 1940),

(f) the expression "other pipe tobacco" mentioned in Parts II and III of the Schedule to this Resolution means manufactured tobacco of kinds normally intended to be used in pipes, not being hard pressed tobacco.

(3) 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 April, 1967, be charged, levied and paid at the several rates specified in Part IV of the Schedule to this Resolution in lieu of the several rates specified in Part V of the Third Schedule to the Finance Act, 1966.

(4) That, subject to the provisions of paragraph (5) of this Resolution, there shall be charged, levied and paid on all stocks of tobacco of every description which at five o'clock in the afternoon of the 11th day of April, 1967, are in the ownership or possession of a licensed manufacturer of tobacco and in any place in the State other than a bonded warehouse, a duty of excise, payable by the manufacturer, at the following rate, that is to say:

(a) so far as the stocks consist of unmanufactured tobacco, three shillings and five pence for every pound weight of the stocks, and

(b) so far as the stocks consist of tobacco (including snuff) other than unmanufactured tobacco, three shillings and five pence for every pound weight of unmanufactured tobacco from which, in the opinion of the Revenue Commissioners, the stocks were derived.

(5) That the duty provided for by paragraph (4) of this Resolution shall not be chargeable on any manufactured tobacco (including cigarettes, cigars and snuff other than offal snuff) as to which it is shown to the satisfaction of the Revenue Commissioners that it was at five o'clock in the afternoon of the 11th day of April, 1967, fully prepared for sale by retail and that either —

(i) it was not the product of any operation carried out by any manufacturer in whose ownership or possession it was at that time; or

(ii) it was at that time held as retail stock in premises used for selling tobacco by retail; or

(iii) it was at that time in transit from seller to buyer under a contract of sale:

Provided that no tobacco shall be deemed for the purposes of this paragraph to have been fully prepared for sale by retail if, according to the ordinary course of business of the person in whose ownership or possession it was or to whom it was in transit, it had still to be subjected to some further process (other than packing) before being sold by him.

(6) That every licensed manufacturer of tobacco shall not later than the 18th day of April, 1967, make a return to the Revenue Commissioners in a form approved by them giving such information as they may thereby require and, in particular, showing the quantities by weight of tobacco of every description in his ownership or possession at five o'clock in the afternoon of the 11th day of April, 1967, in any place in the State other than a bonded warehouse.

(7) That every licensed manufacturer of tobacco shall —

(a) produce, if so required, to any officer of Customs and Excise the trade books and all accounts and documents belonging to or in the possession of such manufacturer which are necessary for verifying the return made in pursuance of paragraph (6) of this Resolution, and

(b) render all reasonable assistance to such officer in the taking of an account of the tobacco which was in the ownership or possession of such manufacturer at five o'clock in the afternoon of the 11th day of April, 1967.

(8) That every licensed manufacturer of tobacco shall, immediately upon making the return required by paragraph (6) of this Resolution or on the 18th day of April, 1967, whichever is the earlier, pay to the Revenue Commissioners the full amount of the duty mentioned in paragraph (4) of this Resolution on any tobacco which was in his ownership or possession at five o'clock in the afternoon of the 11th day of April, 1967, and was chargeable with the said duty, and the Revenue Commissioners may, if they think fit, defer the payment of the duty to a date not later than the 1st day of November, 1967, upon the manufacturer giving security by bond or otherwise to their satisfaction that such duty will be paid.

(9) That every manufacturer required by paragraph (6) of this Resolution to make such return as is mentioned in that paragraph who either fails to make such return or makes a return which is incomplete, false or misleading in any material respect or fails or refuses to do anything which he is required by paragraph (7) of this Resolution to do shall be guilty of an offence under the statutes relating to duties of excise and shall for every such offence incur an excise penalty of fifty pounds, and all tobacco in relation to which such offence was committed shall be forfeited.

(10) That where drawback is payable in respect of tobacco on which the excise duty provided for by paragraph (4) of this Resolution has been paid, such drawback shall, to the extent of the duty paid in pursuance of the said paragraph (4) as determined by the Revenue Commissioners, be a drawback of excise.

(11) 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	16	3
containing less than 10 per cent. by weight of moisture	,, ,,	4	4	8.5
if unstripped or unstemmed:—
containing 10 per cent. or more by weight of moisture	,, ,,	3	16	2.5
containing less than 10 per cent. by weight of moisture	,, ,,	4	4	8

	Full	Preferential
	£	s.	d.	£	s.	d.
Manufactured:—
cigars	the lb.	4	15	0.6	3	19	2.5
cigarettes	,, ,,	4	12	9	3	17	3.5
Cavendish or Negrohead	,, ,,	4	14	5.4	3	18	8.5
Cavendish or Negrohead manufactured in bond	,, ,,	4	13	10.2	3	18	2.5
other manufactured tobacco	,, ,,	4	12	5.4	3	17	0.5
snuff containing more than 13 per cent. by weight of moisture	,, ,,	4	12	0.6	3	16	8.5
snuff not containing morethan 13 percent. by weight of moisture	,, ,,	4	14	5.4	3	18	8.5

PART II.

Customs.

		Full	Preferential
		£	s.	d.	£	s.	d.
Manufactured:—
cigars	the lb.	4	11	7.9	3	19	2.5
cigarettes	,, ,,	4	9	4.4	3	17	3.5
Cavendish or Negrohead	,, ,,	4	11	1	3	18	8.5
Cavendish or Negrohead manufactured in bond	,, ,,	4	10	6.1	3	18	2.5
other manufactured tobacco:—
hard pressed tobacco	,, ,,	4	6	8.9	3	14	8
other pipe tobacco	,, ,,	4	8	8	3	16	7.1
other manufactured tobacco	,, ,,	4	9	1.4	3	17	0.5
snuff containing more than 13 per cent. by weight of moisture	,, ,,	4	8	8.5	3	16	8.5
snuff not containing more than 13 per cent. by weight of moisture	,, ,,	4	11	1	3	18	8.5

PART III.

Customs.

		Full	Preferential
		£	s.	d.	£	s.	d.
Manufactured:—
cigars	the lb.	4	10	3.3	3	19	2.5
cigarettes	,, ,,	4	8	0.3	3	17	3.5
Cavendish or Negrohead	,, ,,	4	9	8.5	3	18	8.5
Cavendish or Negrohead manufactured in bond	,, ,,	4	9	1.7	3	18	2.5
other manufactured tobacco:—
hard pressed tobacco	the lb.	4	3	0.3	3	12	3.5
other pipe tobacco	,, ,,	4	6	10.5	3	16	1.7
other manufactured tobacco	,, ,,	4	7	9.3	3	17	0.5
snuff containing more than 13 per cent. by weight of moisture	,, ,,	4	7	4.5	3	16	8.5
snuff not containing more than 13 per cent. by weight of moisture	,, ,,	4	9	8.5	3	18	8.5

PART IV.

Excise.

Unmanufactured:—		£	s.	d.
containing 10 per cent. or more by weight of moisture	the lb.	3	15	1.5
containing less than 10 per cent. by weight of moisture	,, ,,	4	3	6
Manufactured:—
Cavendish or Negrohead manufactured in bond	,, ,,	3	17	1.5

Mr. Sweetman

Can the Minister tell me what 2 (c) means?

Mr. Haughey

I was expecting that. It deals with a new criterion of origin.

Mr. Sweetman

Has this not been put in any Resolution?

Mr. Haughey

No.

Mr. Sweetman

Should it not be? When the new customs schedules revised list came in, was this not covered?

Mr. Haughey

This has to do with the elimination of the preference margin under the Anglo-Irish Free Trade Area Agreement.

Mr. Sweetman

Is it introduced specifically for Rhodesia, for example?

Mr. Haughey

No, no. Under the Free Trade Area Agreement, we have to eliminate over ten year periods preference between UK manufactured tobacco and our own and this is to provide the new criterion whereby UK tobacco products can be classified.

Mr. James Tully

The Minister made a reference to the fact that the average increase would be 2d per packet. As happened last year, because of the different sizes of cigarettes and because of the difference between tipped cigarettes and ordinary cigarettes, somebody will make substantial gain. The Minister gave a guarantee that the manufacturers would plough that back into the industry. I hope I took him up correctly. What does that mean? Will they give more coupons, more coloured cigarette cards, or will they give better prizes for their competitions?

Mr. Haughey

They will give a bigger cigarette.

Mr. James Tully

Will they?

Mr. Haughey

Yes, they will.

Mr. James Tully

Would the Minister not try to make some arrangement——

Mr. Haughey

I do not smoke cigarettes.

Mr. Sweetman

He is in the cigar class.

Mr. M.P. Murphy

The Minister smokes cigars.

Mr. Haughey

Whiffs.

Mr. James Tully

Would the Minister not try to make some arrangement with the tobacco companies whereby this substantial amount of money would in fact come back to the Exchequer, rather than what is happening? Perhaps the Minister could give us some figures. Last year some estimated figures were given which appeared to me to be colossal and the amount was divided between the tobacco companies as a result of the difference in size and price of standard cigarettes. Has the Minister any estimate of what the difference would be or could he perhaps, later on, give us some figures of what the tobacco manufacturers will net?

Mr. Haughey

I can assure the Deputy that I am getting all I am looking for. I am getting my pound of flesh and the tobacco manufacturers will not make anything on this because of the inadequacy of the possible adjustment of the margins. In so far as any surplus will arise to them, which is not coming to me, they will put it into the cigarette.

Mr. Dillon

There may be an explanation of this when it is read in conjunction with Resolution No. 1. The House will remember that in regard to the adjustment of super-tax certain proposals were made which were designed to accommodate certain sections of the community. This deals with cigarettes, not with cigars.

Dáil Éireann debate -
Tuesday, 11 Apr 1967