The sun. [volume] (New York [N.Y.]) 1833-1916, 1903-09-28
CUBA'S NEW TAXES.

HAVANA. Sept. 32.-The Cuban Official
Gazetts (Goceta Ofci1D OF Sept. II pub
lshes In detail the terms and conditions Of
the stamp tax which Is to provide for the
proposed national loan Of 3s5, 900, 900. The
act Is supplementary to the loan law OF
Feb. p, and to the notifications Of that
law effected by acts Of May and June l3
Three GLASSES OF stamps are provided. az
follows:
Class Observation-Disclosures. deportation
Class 9. Manufacture. sale. or consumption
The importation tax is applied to alcoholic
liquors, sparkling wines, still wines, natural
cider, beer. artificial mineral waters and
that form OF liquid refreshment known in
the United States a. soft drinks, matches
and playing cards. Strong liquors are
taxed, on importation. In addition to the
regular customs duty, 20 cents the bottle,
sparkling wines 50 cents the bottle, still
wines 2 cents, cider cents, beer cents on
each case Of twenty-four half bottles, arti-
acial waters and refrescos cents on each
case Of twenty-four half bottles. matches
half cent on each case or package OF fifty
matches or less, playing cards cents for
each pack.
The export tax applies to cigars. at the
rate Of 81 for each ! eco. and at that rate for
smaller lots. to cigarettes at 10 cents per
1000. and to leaf tobacco at 81 so for each
twenty-five pounds.
The manufacture, sale and consumption
tax covers strong liquors at 20 cents the
bottle. wines at Is cents the bottle; beer.
artificial waters. DC, at S cents for each
case Of twenty-four half-bottles: matches.
half-oent for each package Of Atty or less;
cigars, at 20 cents the 100, or at that rate for
boxes or packages Of SO, or OF packages OF
rs or less; leaf tobacco at cents the pound;
playing cards at cents the pack: and sugar
at q rate which, because Of the manner in
which the article is usually packed for ship
ment, namely. sacks averaging about seven
to the ton, will cost the halloween about IS
cents par ton.
With the exception OF the export group,
these taxes will 60 into effect about Nov. /.
It appears from the wording Of the measure
that the tax applies to all stocks Of these
goods on hand and the intervening time is
allowed for the purchase Of the stamps and
their proper attachment to the specified
articles. Under the provision OF the law.
the tax on the export class does not become
operative until, by the terms effected with
those with whom the loan is placed, the
dation Of the loan.
The regldmento Of Sept. II provides in
detail for the means and methods for the
sale Of the stamps; for their proper attach
ment to the various bottles, packages, cases
or other forms OF wrappage Of the different
articles; for the administration Of the sys-
tenn Of collection: and for official inspectors
to enforce strict compliance with the law and
to watch for attempts at evasion. II also
sets forth that which shall be considered
infractions Of the law and provides penal
ties ranging from IS to 500 for such infrac-
tons. Second or third convictions for vio-
lation are subject to greatly increased pen
atty. up to $1,000.
II is assumed that the revenues derived
from this system will sufficiently increase
the present income to allow the payment
OF all necessary expenses Of the Govern
ment and leave margin which will provide
for the payment Of the interest upon the
proposed loan and for its gradual liquida-
ton. Assuming continuance Of the same
administrative economy AZ that which, has
been exercised during the last eighteen
months, the life of the Cuban Government,
there is no reason to doubt the sufficiency
OF the revenue. While the measure is, at
present, OF the nature Of an experiment.
it is expected that the stamp tax will yield
under present circumstances. an annual in
come Of q. 900 900 to 81, 500, 1000. At IS cents
per ton, sugar alone should yield $3.50, 900.
The most serious objection and it is really
serious, lies in the application Of an addi-
tional tax at time when Cubans are so little
able to bear any increase in their taxes. A
few months ago no little disturbance was
caused by an attempt to impose a system
OF provincial taxation. Protest was 80 gen.
eral and so vigorous that in not a few cases
theatres suspended performances and mer-
chants closed their doors, refusing to sell IL
obliged to pay tax on articles sold. 1t be-
came necessary to suspend some OF these
taxes and to modify others.
Cubs's present revenues from all sources
approximate $1,000, Oo0 per year. About
95 per cent. OF this comes from the GUS ms
tariff. Direct taxation is small even in its
total amount, and being, as it is, applied
upon returns obtained and not upon fixed
valuations. it DOES not bear heavily upon the
people. The new tax will doubtless be re-
garded az burdensome. inasmuch as it will
increase the cost Of certain articles Of gen.
eral use and consumption.
Naturally, the much desired loan is i'm
possible without some such provision for il,
but It is not at all certain that the loan will be
placed Immediately. 1t Is now seven months
since the Cuban Congress authorized he
President to effect IAN immediate loan"
upon generally spe cited terms. The loan
being obtained, the purpose is All immediate
distribution of sum exceeding $40, 900 900
in payment Of the army OF the revolution.
With such a sum in circulation, the present
financial stress existing among the people
would be relieved. and the raymen. Of an
increased taxat ion would be easy.
When the law was passed II was supposed
that the loan would he placed and the money
in circC lat ion before a call was made for
the tax upon which the loan was based As
it has turned out the loan il still quite in the
air. and taxes are to be increased by about
IL per cent, heavy increase for an imIe-
cunious people. A marked discomfort al
ready Is manifest among the members of the
unpaid army, many Of them beg in great
need Of the sum which the Government
established by their patriotism and devo-
ton has pledged itself to pay them. 1t now