The Express.
London, England, 1855-04-26 00:00:00

THE INCREASE IN THE SPIRIT DUTIES.

Tux proposal of the CHANCELLOR of the Excus
WEI to increase the duties levied on spirits in Soot-
land and Ireland was one of the items of his Budget
to which we at first felt inclined to demur. Our
principal reason wu a fear that the augmented duty
would have a tendency to stimulate illicit distillation.
We find upon inquiry that scarcely any apprehension

on this score prevails among the persons moot con-
, versant with and interested in the subject, and there-
fore our main objection to the proposed increase falls to
the ground. There remain, however, some contider-
&dons bearing on the subject which appear to be
not unworthy of attention.
The question is complicated by the cireumstanos
that in point of fact two different rates of duty
are levied upon two different classes of home-made
spirits. The rate of duty upon spirits distilled from
grain is nominally the same as that upon spirits dis-
tilled from malt. But in the ease of the latter the
duty upon malt itself operetta as an additional duty on
the spirits produced from it. The CHANCELLOR of the
EXCHEQUER proposes to allow a drawback of Is. 4d.
per gallon on spirits distilled from malt ; but this will
still leave a malt duty never lean in amount than Bd.
per gallon on this ohms of spirits, in addition to the
spirit duty. At prevent the duty on British malt
spirits, including the malt duty, is in England
9s. 2d., in Scotland es. Bd., and in Ireland 6s. 4d. If
the proposal of the CHANCELLOR of the EXCHEQUER
is sanctioned by Parliament, the rates will be—
In England, Bs. Bd.; in Scotland Be. 6d.t and in Ire-
land Bs. &I.

The first question is, how will this affect British
malt spirits in the market, in their competition with
colonial spirits P The duties on colonial spirits, ac-
cording to the Citeeczuza's scheme, will be in
England, Be. 2d.; in Soothed, fie. 2d.; and in Ire-
land, 13s. 4d. This leaves a difference of 4d. in favour

of colonial spirits in all parts of the United Kingdom.
There is no difference in the prime of the two commo-

dities to warrant such a difference of duty—equiva-
lent to a bounty of 4d. per gallon on colo-
nial spirits; for colonial spirits sell in the
market a► a pries u high, or indeed higher
than the home - made article. Nor is the
4d. per gallon of duty in excess the only dis-
advantage with which our home distillers from malt
will have to contecd. The home producers--both the
=Hater and distiller—are fettered in their working by
very stringent Excise regulations, which enhance the
cost of the manufacture, and from which the colonial
distiller is free. It may also be mentioned that the
estimated amount of malt duty, to be charged upon
every gallon of spirits distilled from that material,
will prove to be in fact considerably tutder the mark.
If the produce of spirits exceeds the rate of two
gallons for each bushel of malt, the distiller is
charged with the duty on a bushel of malt
for every two gallons in exams. Thou, for
example, if from a quarter of malt (eight
bushels) he prolapse twenty gallons, be is obargedi
the seam as if he had nod ten bushels. It is pro-

posed by (we believe) a majority of the malt dis-
tillers that a drawbacc of Is. 10d., instead et the
proposed drawback of Is. 4d. per gallon, for malt
duty, should be allowed upon malt spirits. This indeed
would give a duty of 2d. a gallon lees on the home-
made spirits than on the colonial ; but as the revenue
restrictions on distillation were estimated by Parlia-
ment, in 1848, equivalent to a difference of 4d.
per gallon against the home distiller, and in favour
of the colonial, this would still leave the latter an
advantage amounting to 2d. per gallon. The surcharge
arising from the peculiar method of charging the
malt duty on spirits must also be kept in remem-
brance. The claim of the home distillers from malt
appears, therefore, to be no more than reasonable.

- There is another consideration connected with this
proposal to allow a drawback for malt duty of
Is. 10d. instead of Is. 4d., on every gallon of malt
spirit', that deserves attention. Since 1848, •drow-
back of the whole duty oa malt used in making
spirits has been allowed upon all malt spirits ex-
ported. This has called into existence a considerable
export trade in spirits. But as long as a higher duty
is imposed upon malt spirits entered for home con-
sumption than on malt spirits entered for export, •
wide door is opened for frauds on the revenue,
by substituting grain spirits for the malt spirits
entered for exportation, and introducing malt spirits
for home consumption at the rate of duty charged on
grain spirits. The allowance of a 10.10 d. drawback
on all malt spirits would simplify the export systole,
and remove the temptation to such frauds.
So far as we can learn, the objections of the Scotch
and Irish spirit trades to the proposed increase of
duty rest mainly on the considerations here adverted

to. - A atauusuppostiluu. livwever, la threatened I
to the resolution for charging the additional
spirit duty on the stocks of dealers, rectifiers,
8:c. It is alleged that such a proposal is
contrary to former practice. This is true; but it
must also be remembered that it is made under altered

circumstances. The additional duty now proposed is,
with one exception, greater than any that has been
made since 1819; there is, therefore, much more risk
of loss to the revenue if stocks are left untouched.
Great advantage was taken by dealers, when the last
addition was made in 1854, by paying duty on
large quantities before the increased duty came
into operation. Distillers, too, are now allowed
to have stacks, and might thus escape the
additional duty to a considerable amount.
Lastly, as the trade in spirits between England and
Scotland, from dealers' stocks, is to be entirely nitre.
stricted after the equalisation of the spirit duties in
these two oonntries takes effect, if the additional duty
is not charged on the dealers' stocks in Scotland, they
may send large quantities of spirits on which only
6s. per gallon has been paid to compete with spirits
upon which the English dealers have paid 711. 10d.
However unpalatable it may be, the levying of the
increased duty on stocks seems really no more than
equitable.—Daily News.