Hon. J. J. McCANN (Minister of National Revenue) moved for leave to introduce Bill No. 228, to amend the Excise Act, 1934.
He said: This bill to amend the Excise Act, 1934, is designed primarily as an economy measure. For many years past, malt has been subject to duty at the point of production, that is the malt-houses. It is now proposed to assess the duty as the malt is received at the brewery. The cost of administration is greatly in excess of what it will be if we do not attempt to collect the excise tax on all malt 5849-227
and then make refunds to those who use it in industry. None of these uses in industry, other than in the breweries, has ever yielded any federal revenue. It is believed that the control heretofore exercised should now be relinquished. This has been the experience in other countries, and Canada is the only English-speaking country, so far as is known, that maintains this system.
This bill, therefore, is designed to remove that control and to place it at the point where the revenue actually accrues, namely at the breweries, and to amend the Excise Act to bring this into effect.
Motion agreed to and bill read the first time.