March 10, 1948 (20th Parliament, 4th Session)

LIB

Robert Henry Winters (Parliamentary Assistant to the Minister of National Revenue)

Liberal

Mr. WINTERS:

The department has no information as to the exact amount of taxes paid! on the articles referred to in the question because of the variation in prices of different manufacturers of the same lines, and the difference in value and quality of merchandise, etc.
The following information as to the application of the taxes on the various articles mentioned is, however, supplied:-
(a) Subject to sales tax only on the manufacturer's selling price to wholesalers or its equivalent;
(b) Prior to November 18, 1947, subject to a 10 per cent excise tax and an 8 per cent sales tax on the manufacturer's selling price. On and after November 18 subject to an excise tax as follows:-
At $1,200 or less, 25 per cent;
At more than $1,200 but not more than $2,000, 25 per cent on $1,200 plus 50 per cent, on the amount in excess of $1,200;
At more than $2,000, 25 per cent on $1,200 plus 50 per cent on $800, plus 75 per cent on the amount in excess of $2,000; and to a sales tax of 8 per cent on the manufacturer's selling price.
(c) Same as in (a).
(di) Same as in (a).
(e) Cigars are subject to an excise tax of 25 per cent and to a sales tax of 8 per cent on the manufacturer's selling price to wholesalers or its equivalent. Cigars are also subject to an excise duty of $1 per thousand.
(f) Cigarettes are subject to an excise tax of 2 cents for each five cigarettes or fraction of five cigarettes contained in any package, and to a sales tax of 8 per cent payable on the manufacturer's selling price to wholesalers or its equivalent. They are also subject to an excise duty of $6 per thousand.
(g) Chocolate candy of this type is subject to an excise tax of 30 per cent and to a sales tax of 8 per cent on fifty-one per cent of the retail selling price.
If any of the goods mentioned were imported, the sales tax and the ad valorem excise taxes would apply on the duty paid value. The specific excises would be as stated.

Topic:   QUESTIONS
Subtopic:   INDIRECT TAXES-CLOTHING, ETC.
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