May 29, 1934

LIB

James Layton Ralston

Liberal

Mr. RALSTON:

Why not make the reductions retroactive as well as the taxes?

Topic:   WAYS AND MEANS
Subtopic:   EXCISE ACT AMENDMENT
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LIB

Samuel William Jacobs

Liberal

Mr. JACOBS:

Yes, retroactive on the beer we have consumed.

Topic:   WAYS AND MEANS
Subtopic:   EXCISE ACT AMENDMENT
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Paragraph agreed to. Mr. M cl NT OS II: With reference to resolution No. 1 amending the Excise Act and providing that the excise duty on malt be increased, the tax as brought down was 7^ cents.


CON

Edgar Nelson Rhodes (Minister of Finance and Receiver General)

Conservative (1867-1942)

Mr. RHODES:

It has been reduced to six cents.

Topic:   WAYS AND MEANS
Subtopic:   EXCISE ACT AMENDMENT
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LIB

Cameron Ross McIntosh

Liberal

Mr. McINTOSH:

I was waiting for this resolution to come up, but unfortunately I was a little late coming in. I should like to be allowed to put on record the view of the Star Brewing Company, Limited, of North Battleford in regard to this excise tax on beer. The statement they make is as follows:

Proposed method of collecting excise tax on beer satisfactory but rate too high. Under proposed arrangement all taxes on beer are collected five to six months before beer is sold at practically the old rate. Brewers anxious to reduce beer price by passing reduction in taxation on to consumer. Five cents tax per pound on malt instead of seven and a half would make this possible. Reduced beer price would bring increased sales. Increased sales would mean increased employment, increased actual revenue on malt and in duty on hops.

That is the viewpoint of the Star Brewing Company, Limited, of North Battleford. The minister has made a change in the duty but not the change which this company desires. I wished to put on record their statement in

the matter and to ask the minister if he has .done all that he can with respect to meeting their viewpoint.

Topic:   WAYS AND MEANS
Subtopic:   EXCISE ACT AMENDMENT
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CON

Edgar Nelson Rhodes (Minister of Finance and Receiver General)

Conservative (1867-1942)

Mr. RHODES:

Representations were made to us by the brewers' association of Ontario, and the lowest figure they suggested was five and a half cents. After conference with the officials of the department, I came to the conclusion they would not be overmodest in their request and that when we had placed the figure at six cents we had gone about as low as we could go with safety. We felt that we were meeting the wishes of the brewers as nearly as possible. What we had in mind was the desire to reduce the tax so that a man could get a five cent glass of beer and I believe that is what will happen under these taxation proposals.

Topic:   WAYS AND MEANS
Subtopic:   EXCISE ACT AMENDMENT
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LIB

Cameron Ross McIntosh

Liberal

Mr. McINTOSH:

The same company makes the statement that the proposed change in taxation is of no value and under it practically no reduction takes place. They state that home brewing is made profitable by high taxation and that much revenue is lost; that low taxation would cut out the home brewer and assist in increasing the revenue from legally made beer.

Topic:   WAYS AND MEANS
Subtopic:   EXCISE ACT AMENDMENT
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CON

Edgar Nelson Rhodes (Minister of Finance and Receiver General)

Conservative (1867-1942)

Mr. RHODES:

There is a reduction and I would be interested in getting the reaction of that company to the new proposals.

Topic:   WAYS AND MEANS
Subtopic:   EXCISE ACT AMENDMENT
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LAB

Humphrey Mitchell

Labour

Mr. MITCHELL:

I object in a humorous way to the observations just made. We should not be preventing people from making their own beer. Many who come from the older countries of Europe have their own recipes and I think they are entitled to just as much consideration as the brewers. This is why I feel more or less gratified at the reduction in the tax to those who brew their own beer.

Topic:   WAYS AND MEANS
Subtopic:   EXCISE ACT AMENDMENT
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Resolution agreed to.


CUSTOMS TARIFF AMENDMENT


1. Resolved, that the customs tariff, being chapter forty-four of the revised statutes of Canada, 1927, as amended by chapter thirty-nine of the acts of 1929, chapter thirteen of the acts of 1930 (first session), chapter three of the acts of 1930 (second session), chapter , thirty of the acts of 1931, and chapters six and thirty-seven of the acts of 1932-33, be further amended by striking thereout paragraph (j) of subsection (1) of section 2 thereof and by substituting therefor the following:- _ , (j) "proof," "proof spirit" or "proof spirits," means any spirit having the strength of proof by Sikes' hydrometer, that is, spirit which at the temperature of fifty-one degrees Fahrenheit weighs exactly twelve-thirteenths of the weight of an equal measure of distilled water at the same temperature. Special War Revenue Act


CON

Edgar Nelson Rhodes (Minister of Finance and Receiver General)

Conservative (1867-1942)

Mr. RHODES:

This is purely an administrative change, the purpose being to provide a more precise and accurately worded definition of proof, proof spirit and proof spirits. This is in conformity with representations made by the Department of National Revenue.

Topic:   WAYS AND MEANS
Subtopic:   CUSTOMS TARIFF AMENDMENT
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Resolution agreed to. 2. Resolved, that the aforesaid customs tariff be further amended by adding to section 5 thereof the following subsection:- (5) In computing the ad valorem rate of duty on tea purchased in bond in the United Kingdom, the value for duty shall not include the amount of the customs duty payable on tea for consumption in the United Kingdom.


CON

Edgar Nelson Rhodes (Minister of Finance and Receiver General)

Conservative (1867-1942)

Mr. RHODES:

This is restoring an old section. It has the effect of lowering the duty upon tea.

Topic:   WAYS AND MEANS
Subtopic:   CUSTOMS TARIFF AMENDMENT
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LIB

James Layton Ralston

Liberal

Mr. RALSTON:

Is it correctly worded? It states "in computing the ad valorem rate of duty," but the rate of duty does not need to be computed.

Topic:   WAYS AND MEANS
Subtopic:   CUSTOMS TARIFF AMENDMENT
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CON

Edgar Nelson Rhodes (Minister of Finance and Receiver General)

Conservative (1867-1942)

Mr. RHODES:

It is to relieve the Canadian purchasers of tea from the payment of what amounts to a double duty.

Topic:   WAYS AND MEANS
Subtopic:   CUSTOMS TARIFF AMENDMENT
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LIB

James Layton Ralston

Liberal

Mr. RALSTON:

It says, "in computing the ad valorem rate," but that rate is fixed; it should be, "in computing the ad valorem duty."

Topic:   WAYS AND MEANS
Subtopic:   CUSTOMS TARIFF AMENDMENT
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CON

Edgar Nelson Rhodes (Minister of Finance and Receiver General)

Conservative (1867-1942)

Mr. RHODES:

It appeared in the tariff until 1931 at which time it was dropped because for some years there had been no customs duty on tea entering the United Kingdom. The provision had become meaningless but subsequently a duty was placed on tea by the United Kingdom and unless this amendment went through we would be placing a tax upon a tax.

Topic:   WAYS AND MEANS
Subtopic:   CUSTOMS TARIFF AMENDMENT
Permalink
LIB

James Layton Ralston

Liberal

Mr. RALSTON:

My only point is in connection with the wording of the resolution. I do not think it carries out what you suggest.

Topic:   WAYS AND MEANS
Subtopic:   CUSTOMS TARIFF AMENDMENT
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May 29, 1934