Samoan Duties

Drastic Increase in Attempt to Balance Budget.

From Our Own Correspondent.

APIA, February 12.

OFFICIAL announcement has been made of a considerable increase in Custom Duties, effective as from January 1, 1932.

As only a few months ago, the Ad ministrator had stated his belief in get ting along without raising duties, the measure has unpleasantly surprised people who, with their revenue reduced, now face a higher cost of living.

The new duties are as follows: Post and Customs Service Tax, from 1\ to 5 per cent.

Benzine, import duty, from 4d. to 6d. per gal.

Kerosene, import duty, from 3d. to sd. per gal.

Timber, dressed, per 100 sup. ft., from 2/to 4/-.

Timber, rough, per 100 sup ft., from 1/6 to 3/-.

Tobacco, per lb., from 3/6 to 4/6.

Cigarettes, not exceeding 2½lb. per 1,000, from 25/6 to 30/- per 1.000.

Cigarettes, other kinds, per lb., from 10/6 to 12/6 per 1.000.

Cigars, per lb., from 12/- to 15/- lb.

Import duty, ad valorem, to be increased by 2½ per cent.

It may be safely predicted that the new duties will not result in any large increase in revenue for the Adminis tration. People simply cannot spend more money on luxuries like tobacco, and a lot of Europeans are turning to Samoan tobacco as a substitute for the imported brand.

The use of motor vehicles is much limited now. About half of the licensed motor vehicles are being laid up and more will go into disuse when the li censes expire on March 31. Building operations are completely at a stand still and no timber in large quantities will be imported in the near future.

Generally speaking, importations will be limited to the utmost and, conse quently, the new customs duties will not result in the expected increase in revenue.

The only way out for the Administra tion is to further cut down expendi ture and so endeavour to balance the budget. The German Administration, before the War, not only managed to balance the budget without any grants from the Imperial Government, but also accumulated a nice little surplus, be sides.