Fiscal Duties. The attached additional information on fiscal duties has been submitted by the following countries:
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1 GENERAL AGREEMENT ON TARIFFS AND TRkDE RESTRICTED 24. July 1952 SUB-GROUP OF THE WORKING PARTY ON THE ItEDUCTION OF TARIFF LEVELS Fiscal Duties The attached additional information on fiscal duties has been submitted by the following countries: Austria Benelux Canada Denmark Germany Norway United Kingdom ACCORD GENERAL SUR LES TARIFS DOUANIERS ET LE COMMERCE 24 juillet 1952 SPJJS^GROTra^^ Los renseignements complémentaires ci-joints ont été fournis sujet dos droits de caractère, fiscal par les pays suivants: au Allemagne Autriche Benelux Canada Danemark Norvège Royaume-Uni MGT/89/52
2 - 2 - AUSTRIA Information relating to commodities! subject to fiscal duties SITC No. Product Austrian Tar.Item No. Rate per 100 kg ex ex Liver pies Caviar 107 e ,000 ex Caviar substitutes ex 100 1,000 ex Truffles 37 1,000 ex Truffles preserves Coffee, not roasted 37 2 a Coffee, roasted Coffee, extracts of 2 b 107 g Cocoa beans, not roasted 1 a Cocoa beans, roasted Tea 1 b 3 ' Pepper and piments Pepper Other spices Saccharine etc» , Unmanufactured tobacco Cigars Cigarettes ex ex Other tobacco manufacturing Cocoa husks, not roasted Cocoa husks, roasted 22 1 a 1 b Wine, in barrels Wine, in bottles 87 a 87 b 45*) own 90*)» production n internal tax: 50 schilling per 100 liter. /
3 - 3 AUSTRIA (Cont'd) SITC No. Product Austrian Tar.Item No, Rate per' 100 kg *) ") ex Beer, in barrels Beer, in bottles Distilled alcoh. bevor. Wine-Brandy Spirit Arrack, Rum, etc. Corals, genuine 85 a 85 b 86 a ex 86 a 86 b 86 c ex 474- c own production own production own production own production own production own production Synthetic perfume materials 516 a & b a Perfumes and cosmetics 518 b 519 a 519 a , b 2,200 ) internal tax: 63 to schilling plus 5 schilling special tax per 100 liter. SPIRITS For spirits, alcoholic products, ether and ether-containing products, m excise (Monopoly countervailing excise) has to be paid: Austrian schillings if the alcohol-contents are declared»...*... 1,800 per each 100 liter alcohol, if the alcohol-contents are not declared, the excise is levied as to weight and amounts for each 100 kg (a) for spirits for human consumption and other alcohol-containing products...»* 1,260 (b) for arrack, rum and brandy...»*... 1,620 (c) for other spirits... 2,250
4 -. k - AUSTRIA (Cont'd) COUNTERVAILING TAX When commodities are imported into the Austrian customs area, a countervailing tax is being levied in order to provide for a compensation between the national commodities burdened by the Austrian purchase tax and the foreign commodities for which such a purchase tax has not been charged. This compensation tax plus all extra charges amounts to 5 per cent of the purchase price or of the value of the imported commodities.
5 - 5 - BENELUX List of items on which the Benelux countries levy fiscal duty and amount of corresponding taxes levied on like domestic products SITC item Description of products Unit Duty on the like domestic Import product duty includ- Included in Not included in ed in the import the import duty the duty and levied tariff separately ) in Belgium Beer: a) in barrels b) in bottles Fr. hectolitre 200. hectolitre 250. Fr. Fr» ) in the Netherlands Beer: a) in barrel» b) in bottles hectolitre 200. hectolitre Wine: a) in receptacles containing more than 2 litres b) in receptacles containing not more than 2 litres: 1. testing not more than 1A by the Gay-Lussac alcoholometer 2. n.s.m. hectolitre ) hectolitre l 52.~ hectolitre 2p85.~ (1) Wino testing over 12 degrees by the Gay-Lussac alcoholometer shall pay for each tenth of a degree of alcohol above 12 degrees : aj an additional duty of Fr per hectolitre for wine testing more than 12 degrees but not more than 13 degrees by the Gay-Lussac alcoholometer} b) an additional duty of Fr per Hectolitre, for wine testing more than 13 degrees by the Gay-Lussac alcoholometer.
6 - 6 - BENELUX (Cont'd) SITC item Description of products Unit Import duty included in the tariff Duty on the like domestic product Included in the import duty Not included in the import duty and levied separately Fr. Fr. Fr, Note No excise duty is levied on wine production and no excise duty on wine production can bo levied under the Benelux Customs Agreement, However, to evaluate the amount.of import duty on wino, due account should bo taken of the excise duty levied on the production of ethyl alcohol» The amount of this excise duty is: 1. in Belgium 9, ,000 = 20,200Ir. per hectolitre of alcohol testing 100.by the- Gay- Lussac alcoholometer} 2. jn_the Netherlands 12,400 frs, or 950 guilders per hectolitre of alcohol testing 100 by the Gay- Lussac alcoholometer Sparkling wines hectolitre 4200, 1,5"00'. Wine prepared with aromatic plants (vermouth and the like) a) in receptacles containing more than 2 litres hectolitre 2,435.- b) other hectolitre 2,935» (sce note above relating to non-sparkling wine) Other fermented beverages a) cider and perry: 1. sparkling hectolitre 4, b) mead and others: 1. sparkling hectolitre 4,200^ (1,500. ((nood) ( ((others)
7 - 7 - CANADA On the basis of the information available at this time, Canada wishes to submit the following data respecting the duties which it considers pf a fiscal nature. Item Principal M.F.N. Tariff Excise Duties (on domestic production only) Fruit juices containing less than 25$ proof spirit Fruit juices containing more than 25$ proof spirit Wines, non-sparkling, containing 2-4$ or less proof spirit Wines containing more than 24$ but not more than 26$ proof spirit Wines containing over 40$ proof spirit Wines, sparkling Beer Distilled alcoholic beverages #2.50 per gallon of juice 30$ and #10, per gallon of juice 20^ per gallon, plus iau per gallon 55^ per gallon, plus 42-^ per gallon. And in addition thereto, for each degree of strength in excess of 26$ until the strength reaches 40$ per gallon - 34 per gallon #10. per gallon plus #3. per proof gallon The basic rate is as follows: #2. per gallon, plus #1.75 per gallon 50^ per gallon, plus 4.0/^ per gallon Whisky and gin - #13. per gallon Rum ~ #14.. per gallon Brandy - #12. per gallon #1.50 per proof gallon #1.50 per proof gallon 50^ per gallon 50^ per gallon Not produced in Canada #2»50 per gallon 45^ per gallon and 21^ per lb» on malt used for brewing #12. per gallon #12.» " #10.»»
8 ~ 8 - CANADA (continued) Item Tobacco, unmanufactured, Turkish Other tobaccos Tobacco imported by cigar manufacturers for use exclusively in the manufacture of cigars in their own factories Cigars Cigarettes Other tobacco manufactures Perfumery containing alcohol Principal M.F,N, Tariff Unstemmed - 22c 7 per pound Stemmed - 4-Opf p9r pound Unstemmed - 20fi per pound Stemmed - 30^ per pound Unstemmed - 15^ per pound Stemmed c / per pound 15% and Sl,75 per pound 15% and #2, per pound, plus #2 C per thousand Snuff - 90JZ( per pound Cut tobacco - 65^ per pound plus 15^ per pound Other types - 90c 7 per pound plus 15fi per pound In containers containing not more than 4 ounces each - 30% When in containers containing more than4- ounces eachi 1) valued at not more than 3. per gallon - 20% and #2. per gallon Excise Duties (on domestic production only) 20j^ per pound 20^ per pound 20^ per pound 01, per thousand #6. per thousand 35^ per pound 35j^ per pound 35j^ per pound #1.50 per gallon #1.50 per gallon
9 - 9 - CANADA (Continued) Item Principal M.F..N...Tariff Perfuraery 2) valued at nore containing than 08, alcohol per gallon - (cont'd) 20$ and 03» per gallon Excise Duties (on domestic production only) It will therefore be seen that the itens considered by Canada as fiscal duties are without exception items on which there is an excise duty on donestic production which does not apply on the imported products»
10 - ::o - " Fiscal Duties which are of a Countervailing Character &SMjLvJ û J a J^\4. c.t-.tyopylic and r.iethylic alcohols : Import duty and tax levied only on Danish production, both: 60 /re per liter Beverages: laport duties. Beer: Wine i In bottles 64 /re per kilo In barrels 58 /re per kilo Sparkling Others 4. 1er, per: liter Red and vhite table vines containing less than 14% alcohol In bobbles In barrels Others In bottles In barrels Her., 20 /re per liter 75 pro per kilo 4. kr, per liter 1 kr, 1$ pre per liter Distilled alcohol beveragesi In bottles Content of alcohol loss than 50% 1 1er.50 /re per liter Others 3 kr. per liter In barrels 1 kr, 50 /re per liter of 50% strength and less Ta:;c,s m levie,d only, on Danish ;Qro_duccipn Beer 30 1er, 4.0 /re per hi. Luxury beer 35 kr, or 37 kr* per hie So-called frjit--xd.no (produced frou. apple juice and alcohol) Containing less than 6% alcohol 25 /re per liter» f,:om 6-14% ;! 35 "» "» nore th.n ZJ& alcohol 70»»» (The alcohol used in the production pays the following tax) Alcohol 60 /re per liter in 100% strength.
11 - 11 s, DgMEK, 'C-ont'dï It must be taken into consideration that both import duties and Internal taxes arc specific rates, and that the values of imported products are higher than values of those Danish products on which internal taxes are levied. Perfj^'aes: Import duty: 10 kr. pex- liter or 20 kr, per liter «25$ a.v. Tax on Danish alcohol: 2 kr. in locfc strength. G_qnf_e_ctioner^/" frc.i chocolate, marchpane, liquorice and sugar; Import duty: 40 $re per kilo Import dutj' en cocoa beans 6 /ore per kilo» ir " almonds 20 /re per kilo " " " liquorice 5 /re per kilo Tax on Danish sugar 11 /re per kilo Sugar Import duty: /re per kilo Tax on Danish sugar 11 /re per kilo.
12 GERMMTC Countervailing Duties Tho Delegation of the Federal Republic of Germany declares that no duty is imposed in the Federal Republic of Germany, which - wholly or partly - is fitted for countervailing the internal indirect revenues (including monopoly countervailing duties) for similar goods manufactured in the Federal Republic of Germany.
13 NORWAY On the articles which are contained in the Norwegian list of custom duties imposed for revenue purposes there are no corresponding internal taxes. On spirits, however, there is a production excise which does not apply to imported spirits. This tax, the rate of which the Norwegian delegation is unable to state exactly novr, is small in comparison with the customs duty on spirits.
14 - Ik - UNITED KINGDOM Fiscal Duties 1. The United Kingdom regards the duties on the following goods as being essentially revenue duties:- Beer Wine Spirits Tea, coffee, cocoa and chicory Sugar, etc» Tobacco Matches & mechanical lighters Hydrocarbon oils '. Playing cards Facts and figures in regard to each of these duties are given below. 2. Beer The duty on beer has been in force for three centuries and revenue from this source has long been a significant item in the Budget* The recoipts in 1950 from imported beer amounted to just over 13*000,000 (circa ^36,000,000). This represents 1.51/» of the total Customs receipts (revenue and protective duties) of 871,000,000. Since the revenue duties consitute 800,000,000 of this and the protective duties 71,000,000, the duty on beer imports amount to about 19^ of the protective duty receipts, Beer is, of course, produced in the. United Kingdom. The domestic production in 1950 amounted to 26,000,000 barrels, as compared with imports of 1,000,000 barrels.-, Home-produced beer is subject to excise duty. The present rate is 7.15.Ai per barrel of strength 1030 * The corresponding import duties are 8.l6»7g- per barrel m.f.n«and 7.l6.7iper barrel preferential. The demand for beer is regarded as relatively inelastic, an increase in duty from l 4o0 per barrol in 1938 to 7.15.Ai" per barrel in 1950 having been accompanied by a slight rise in consumption from 25,000,000 barrels in 1938 to 26,000,000 barrels in Although there arc different opinions on the matter, it could be argued that wine and spirits are substitutable products for beer. Both these are subject to duty, whether l"ported or home-produced. 3. Wine The duty on wine is also a duty of very long standing and the rcvonue from the duty on imports is one of the important elements in the Budgetary receipts, The receipts in 1950 from imported wine were 16,000,000 (circa 4.5,000,000). This represents 1.86$ of the total customs receipts ( revenue and protective duties) or 23$ of the total of protective duty receipts-.
15 » 15 - UN SHD_KTI{C : pom ( Cent «d ) Wine obtained by the direct fermentation of the juice of fresh grapes is not, of course, produced in the United Kingdom, British wine produced from imported inhibited grape must is made in The United Kingdom, Production of British wine amounted to 4,800,000 gallons in The imports of wine in 1950 amounted to 9;7C0,000 gallons, British wine is subject to excise duty at the rate uf 10s-, 6d 0 per gallon (still wine at a strength not exceeding 27 degrees proof spirit). The import duties on imported wine are 13so per gallon (otill wine at a strength not exceeding 25 degrees proof spirit) m,f c n 0 and lls^ 0d- per gallon (still wine at a strenght not exceeding 27 degrees proof spirit) preferential» The demand for wine is regarded as relatively inelastic, an increase in duty on imported wine from 4-s* 0d, per gallon in 1938 to 13s, Ode per gallon in D950 being accompanied by only a slight fall in imports from 2,900,000 gallons in 1938 to 2,600,000 gallons in 1950 (figures for light wine in each case)o Beer, spirits and British-made wine can be regarded as substitutable products in greater or lesser degree; these are all subject to duty, whether imported or home-produced 0 U* Spirits The duty on spirits is also very old and the receipts from the duty have long constituted an important element in the Budget, The receipts in 1950 from imported spirits amounted to 35? 000,OGO (circa #98,000,000), This represents 4. e 0é$ of the total Customs receipts (revenue and protective duties) or 50$ of the receipts from protective duties, Spirits are produced in the United Kingdoms The home production amounted to 7,800,000 proof gallons in 1950, as compared with imports of 3,600^000 proof gallons in the same year 0 Homu-produced spirits are subject -to excise duty 0 The present rate is 10r per proof gallon. The corresponding import duties are 10,13,o per proof gallon (for brandy) m.f.n. and 10*11,2 per proof gallon (brandy) preferential, The demand for spirits is regarded as relatively inelastic. The basic duty in 1938 was 3.12,6 per proof gallon; in 1950 it was 10.10,10 per proof gallon. The imports were 1,300,000 proof gallons in 1938 and 3 ; 600,000 proof gallons in 1950» As indicated above, wine and beer could be held to be substitutable products in a larger or lesser degree and both these are subject to duty, whether imported or home-produced»
16 ~ 16-5 Tea, coffee» cocoa & chicory TOUTED KINGDOM (ConVd) Duties on these goods have long been a feature of many tariffs' and although its importance has declined in recent years, the revenue on these goods was long of importance» The receipts on imports of theso goods in 1950 were 1,600,000 (circa #4,500,000). This represents,18$ of the total Customs receipts (revenue and protective) or 2»3$ of the receipts from protective duties» There is no home production of tea, coffee or cocoa» There is a small production of chicory but on do minimis grounds no excise duty is levied on this home production» The consumption of tea, coffee, cocoa and chicory is very stable and variations are attributable to other factors than the rate of duty. Thus a reduction in the duty on tea from 8d» per lb» in 1938 to 2d» per lb» in 1950 was accompanied l.-y a fall in consumption from ,000 lbs» to 396,000,000 lbs; the latter w^.s entirely duo to.the effect of rationing. Tea, coffee, chicory and cocoa are all regarded as substitutable one for another and for this reason all are dutiable on import» 6» Sugar, etc. This is another traditional revenue duty. Receipts from imports amounted to 7,700,000 (about #22,500,000) in This represents,89% of total Customs receipts (revenue and protective) or 11$ of the total for protective duties» Beet sugar is produced in the United Kingdom and is directly competitive with imported can and beet sugar. Home production amounted to 12,700,000 cwts, as compared with imports of 26,900,000 cwts» Home-produced sugar is subject to an excise duty of 4s» 7d. per cwt» (at a polarisation exceeding 99 ). The duties on imported sugar are lis, 8d. per cwt, m.f.n., 5^.> 10d. per cwt. preferential and 2s. 5d«per cwt. Colonial (at a polarisation exceeding 99 ) The demand for sugar and sugar substitutes is, of course, inelastic» Substitutes for sugar such as saccharin, glucose and molasses are also subject to duty whether imported or home-produced» 7. Tobacco This is the traditional revenue duty and the significance of the revenue derived from it can be judged from the fact that this amounted to 603,000,000 in 1950 o This was 69$ of the total Customs receipts (fiscal and protective) or 8 times the receipts from protective duties»
17 UNITED KINGDOM (Cont'd) There is no commercial home tiroâuction of tobacco; if it were produced, the excise duty of È2 a l6,5"à" P e^ ^D» would apply» The demand is inelastic«the duty and consumption in 1938 were 9s.6d. per lb and 192,000,000 respectively,: The corresponding figures for 1950 were 58s. 2d. per lb and 215,000,000 lbs* 8. Matches and mechanical lighters This is another traditional duty* The duty on imported matches and mechanical lighters yielded,4,383,000 (circa 0 12,300,000) e This constitutes 50$ of the total Customs duties (revenue and protective) or 6.0$ of the receipts from protective dutiesc Matches and mechanical lighters are produced in the United Kingdom. In 1950, 9,800,000 gross of 50-match containers were produced in the United Kingdom; the corresponding imports were 6,900,000 gross. 2,222,000 complete lighters were produced in the United Kingdom in 1950; the corresponding import figure was 72,000 Excise duty is chargeable on matches and on lighters. The current rates are 19s. 2d. per 10,000 matches and 6s a Od-. per lighter, compared with the corresponding import duties of 19e a lid. per 10,000 matches and 7s. Od. per lighter. The demand for matches and lighters is regarded as inelastic since these are products which cannot be substituted. 9» Hydrocarbon oils This is a comparatively recent duty but is now imposed in most industrialised countries for the purpose of raising revenue. Duty on hydrocarbon oils yielded 119,000,000 in 1950 (i a e t about 0 333,000,000). This represents 13.68$ of the total Customs receipts (revenue and protective) or 1.7 times the total receipts from protective duties» Hydrocarbon oils are produced on a very small scale in the United Kingdom. Domestic production in 1950 amounted to 125*000,000 gallons. Imports in the same period -.;ere 2,04.5,000,000 gallons. Excise duty is chargeable on hydrocarbon oils, the basic rate being Is, 9d. per gallon, The corresponding duty on imports is 2s o 6d c per gallon. Imports and consumption have increased steadily since 1938 in spite of. increases in duty, evidence that the demand is not significantly affected by the duty.
18 UNITED KINGDOM (Cont'd) The description hydrocarbon oils embraces all substitutes for petrol, 10, ELaving cards This duty is traditional to the United Kingdom but yields only a very small revenue. The duty collected on imports in 1950 was 1,000. The revenue on home-produced cards was 66,856. The duty on imported cards is currently 3s. 9d. per dozen packs; that on cards made in the United Kingdom is 3s. Od. per dozen packs. The demand is comparatively inelastic and there are no substitutable products.'
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