Taxation in New Zealand • 7 



the tariff was again altered in the direction of further protection. 

 Up to this time the highest rate had been 25 per cent. Some du- 

 ties were now raised to 40 per cent, such as the duty on clothing 

 made to order for residents in the Colony. 



The third period began in 1900, when the Colony had become 

 so prosperous and the revenue from customs duties so abundant 

 that the Treasurer was able to take the duty entirely off kerosene, 

 rice, and salt and to make substantial reductions on other neces- 

 saries of life. The next important step, taken by the Seddon 

 government in 1903, was the establishment of preferential duties 

 in favor of British goods. This did not involve a reduction in 

 the tariff but an increase, since the duties on goods imported 

 from Great Britain and other parts of the Empire remained as 

 they were, while a substantial surtax was imposed on 37 classes 

 of goods of foreign manufacture. On 9 classes of goods the ad- 

 ditional taxation amounted to 20 per cent of the dutiable value; 

 on 2j classes it was one-half of the duty payable under the regu- 

 lar schedule ; while on cement the additional duty was equal «to 

 the regular duty. However, the duty on tea grown in any part 

 of the British dominions was wholly removed except on tea in 

 packets not exceeding one pound in weight. 1 



This additional taxation, while it did not prevent a slight in- 

 crease in imports from foreign countries, seriously checked the 

 importation of those goods on which the surtax was imposed, 

 and was correspondingly advantageous to the colonial and Brit- 

 ish manufacturer, but especially the former. The value of the 

 imports from foreign countries was £2,140,533 in 1903; in 1907 

 it was £2,360,678. In the same time the value of imports of boots 

 and shoes from the United States fell from £102,054 to £33,466, 

 printing paper from £40,206 to £7,577, furniture from £14,206 

 to £13,818, and so on, while the import of goods not subject to 

 the surtax considerably increased. The preferential tariff had a 

 less serious effect on goods imported from Germany, although 

 New Zealand imports four times as much from the United States 

 as from Germany. The combined imports from the United 

 States and Germany amount to 75 per cent of the total imports 



l The Preferential and Reciprocal Trade Act, 1903. 



255 



