The Pamphlet Collection of Sir Robert Stout: Volume 29

Taxes on other Necessaries

Taxes on other Necessaries.

Clothing.—The total value imported in 1876 was £1,644,633: duty at 10 per cent., £164,463; extra cost to the public at least 20 per cent, more—£197,355: 8s. 9d. per head; £2 3s. 9d. to the family of five.

Silks, linens, and many articles of drapery, haberdashery, hosiery, and millinery, arc, no doubt, luxuries but not necessaries. As above in the case of food, I submit that the proportion of luxuries is so small, that it is hardly worthwhile to except any article from the abolition of all duties on clothing. Silks and linens alone produce only £4,200 of revenue. I have no means of ascertaining how much more of the £160,000 might be saved to the revenue by maintaining the duties on articles of silken or linen material in the above four classes: even if it amounts to another £4,200 I would give it up, for the sake of simplification and reduction of Customhouse labour and annoyance to importers.

Furniture and Household Utensils.—Furniture and cabinet-ware, carpets and druggets, floorcloth, mats, matting, and rugs of all materials, baskets and wicker-ware, bellows (except blacksmith's), brass, copper and zinc manufacture and ironmongery, small chains (not of gold or silver), clocks and watches, cruet bottles, cutlery, electro-plated, tin, glass, china, and earthenware, hair cushions, halters, wooden handles hardware, turnery and wooden ware, all pay 10 per cent. One notable exception favours the upper class, by exempting " cabin furniture and effects, which have not been in use, and not imported for sale," from duty altogether. Of this exemption the steerage passenger cannot avail himself. Even if he had the things, or the means to buy them when he starts, he can only bring them as freight, and I suppose pay duty. If he has to wait till he has earned enough to buy them in the colony, he must buy them at the extra cost caused by duty; while the cabin passenger is allowed a certain quantity free of duty.

Of these articles, the value imported is £539,160; the duty collected, £53,916; the extra cost to the people, £64,700;—2s. 10½d. a head,—14s. 4½d. to the family of five souls.

Even Cleanliness is taxed. Of alkali and soda crystals, blacking and blacklead,. brush ware and brooms, brushes and combs, buckets and tubs (wood and iron), clothes pegs, pearlash, starch and blue, patent mangles, sponge, soap and washing powder, and soap, about £45,000 worth is imported, pays £4500 to Government, and costs £5400 more than it need to the public, in actual duty and profit on it, besides keeping up the price of soap made in the colony. The duty on common soap is 3s. 6d. per cwt.,—3/8d. per lb. Cleanliness alone costs everybody nearly 3d. per head on the average more than it ought.

Medicines and Medical Comforts are taxed under "Cod liver oil, cream of tartar, drugs and druggists' sundries, apothecaries' wares, painkiller, gum arabic, sarsaparilla," and some oils at 10 percent.; sulphur, Is. per cwt.; and linseed meal, Is. the 100 lbs.

Of these articles £101,500 worth was imported;—£10,150 revenue; cost to public £12,180. Nearly 6½d. a head.

Artificial Light is taxed under "composition gas piping, lamps, lanterns and lamp-wick, matches and wax vestas, at 10 per cent.; tallow candles ½d., and other candles Id. per lb., and also under oils. Value imported, £182,000; £18,200 revenue; cost to public £21,210. 11½d. a head.

Two absurd anomalies exist in the present manner of taxation. Stationery, for printing purposes, is free; for writing purposes, it pays 10 per cent. Besides the latter, Paper, for wrapping or in bags, pays 10 per cent. Of the two together, £99,380 worth is imported, and pays 10 per cent., or £9,938 in taxes, involving an extra cost to the people of £11,925. Everything relating to the construction of railways and their rolling stock is imported free: most of the material for Cheap Conveyance on common roads is taxed; carriages and carts, carriage materials, saddlery and harness, are imported to the value of £85,056, paying £8,500 to the revenue, and causing an extra cost to the people of £10,200. On the two items, nearly 1s. a head.

Building Materials.—Perhaps there are two things which the best kind of immigrant, or of colonist born in New Zealand, most desires of any: namely, a house of his own, whether on his own land or not, but on his own land if possible. But whether he can own or must hire his dwelling, he is equally affected by the cost of building materials. Some of these are imported free; but still, taxed ones imported in 1876 were valued at £296,241; and the duty collected on these amounts to £26,230; increasing the cost of building to the whole colony by £31,476 yearly, or nearly 1s. 5d. per head.

Summing up all these items comprising necessaries, we have
Table N.—Taxes on Necessaries.
Class. Value Imported. £ Duty Paid. £ Cost to Consumers. £
1. Food 1,062,783 235,347 466,717
2. Clothing 1,644,633 164,463 197,355
3. Furniture, &c. 539,160 53,916 64,700
4. Cleanliness 45,000 4,500 5,400
5. Medicine, &c. 101,500 10,150 12,180
6. Light 182,000 18,200 21,240
7. Stationery 99,380 9,938 11,925
8. Conveyance 85,056 8,500 10,200
9. Building Materials 296,491 26,230 31,476
Totals £ 4,056,003 531,254 821,193

That is to say, Government collects duty at the rate of more than 13 per cent, on imported goods, almost wholly necessaries, valued at upwards of four millions: and the proceeding imposes a burden on the consumers at the rate of more than 20 percent, on those four millions and odd thousands.

But even this table only shows a portion of the burden really imposed on the people in the enhanced cost to them of food. It is only as to farinaceous food that it includes the extra price caused by the protective action of the duty; that is to say, the amount needlessly paid by the consumer because the duty on the imported article keeps the price of the local produce higher than it would otherwise be. This argument applies to other articles of food besides that which is farinaceous, such as salted and preserved meat, soups, fish, jams, jellies, fruit, &c., and also to many articles in the other eight classes,—such as woollen goods, boots and shoes, leather, furniture, baskets and wickerware, cooper's ware, soap, candles, paper, carriages and carts, saddlery and harness, doors and window sashes, and timber generally.

Allowing an addition of £22,557 for this consideration, we have the following result, in round numbers: that the duties on articles comprising necessaries amount to £531,000 yearly; but that those duties impose a yearly burden on the people which amounts to £843,750, or £1 17s. 6d. per head, or £9 7s. 6d. for every family of five.