The Archive · 1925

Labour Budget Relief Not Realized

London, May 6.

The House of Commons today passed the report stage of the tea Euty, unaltered," after rejecting a motion. by Mr." H.C. Charlton (Labour) to. reduce' the" duty: from fourpence to one penny.

Mr. Rennie Smith (Labour), seconding the motion, complained that the: duty was unjust, because "Was jose as heavy" on cheaper fs on dearer teas He suggested hat the matter aight be adjusted bya higher duty on dearer teas, LieuteCol. Walter, Guinness, Financial Secretary to the Treasury, in reply, pointed oot that the tea \daty now was lower than before the war. He agreed that last year remission of the duty was, at the time of the change, passed on to the consumer, but at present the consumer was no longer enjoying' the full reduction. 'The average' price of both the more costly an) the cheaper teas was only about one penny less than before last year's Budget.

Tt was difficult to say whether in price was due to an in in demand oF a decrease of supplies, but, in view of the admitted shortage of supply, a further decrease of the duty would be Tikely to cause such an increase demand. as to cause quite a disproportionate increase in price. More over, the proposed remission woul mean the loss of £5,000,000 revenue inva fall year—Reuter

Text read from the printed page and cleaned; old type leaves the occasional error.

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