22 THE CUBA REVIEW 



of a large part of the population of the island. These commodities are derivative of 

 a single class of raw materials and already pay under the import tariffs of Cuba a very 

 heavy taxation compared with their costs laid down in Cuba, and which is equal to 

 about 50 per cent, of the market value of these commodities at port of export to 

 Cuba. Increased taxation as proposed, which will so materially increase the cost will 

 be conducive of decreased imports, thereby diminishing the government's revenue as 

 import taxes on same by a larger amount than the revenue possible to obtain from 

 this proposed tax, as a reduction of imports of about 7 per cent, will create greater 

 loss of imports than obtained from the proposed taxation. 



This is unjustly taxing one class of commodity, petroleum and its products, in 

 prejudice to practically all other products imported into Cuba and is duplicating the 

 form of taxation provided for under the imports tariffs. It centralizes increased taxation 

 on one class of commodity which increase of revenue, if required by the Government, 

 should be distributed over the various and numerous other classes of products imported 

 into Cuba, in order that the burden may be more distributed and more equitably borne. 



The following points out the specific effect of this to the industries and users 

 of each of these commodities: 



(a) Gas Oil now pays import taxation amounting approximately to 2y^ cents 

 per gallon, which amounts to 55 per cent, of the cost of this commodity delivered 

 F. 0. B. ship Cuba, or approximately 100 per cent, of the cost of the commodity at 

 port of export. The additional tax proposed increases the cost of this commodity to 

 the manufacturers of illuminating gas 5.5 per cent. 



(b) Lubricating oils now pay import taxation amounting to an average of 12 

 cents per gallon, the average cost of which delivered F. 0. B. ship Cuba is 28 cents per 

 gallon, including cost of container. The proposed tax of one cent per gallon amounts 

 to approximately 3 per cent, on the cost of the commodity and increases the total 

 cost to user after paying imports tax amounting to 2 per cent. 



(c) Kerosene now pays import duties amounting to approximately 13^4 cents 

 per gallon, which amounts to 73 per cent, of the cost of the commodity including cost 

 of container F. 0. B. ship Cuba, or 100 per cent, of the cost of commodity and container 

 F. 0. B. port of export. The proposed tax of 1 cent per gallon increases the cost of 

 this commodity to the user approximately 4 per cent. 



(d) Gasoline now pays import duties amounting to approximately 17 cents per 

 gallon which is approximately 45 per cent, of the cost of the commodity F. O. B. 

 ship Cuba. The proposed tax of two cents p>er gallon increases the cost of this com- 

 modity to users 5 per cent. 



(e) Petroleum used for purposes other than fuel now pays an import tax amount- 

 ing to 4 cents per gallon, equivalent to 100 per cent, of the cost of the commodity 

 F. 0. B. ship Cuban ports, and the proposed tax increases said cost 25 per cent, to 

 industries using same. 



Article LVII. Cancellation is asked of this tax as it is unjust, burdening a 

 home industry, which industry is conducive of establishing a market for molasses, a 

 by-product of the sugar industry, and which at the present time has verv little market 

 value. 



Total Values of Imports and Exports 



Month of Juxe 12 Months Ended June 

 1922 1921 1922 1921 



Imports from Cuba $25,101,958 $14,055,814 $210,585,780 $420,399,940 



Exports to Cuba 10,449,492 12,302,556 114,799,891 403,720,541 



Month of July 7 Months Ended July 

 1922 1921 1922 1921 



Imports from Cuba $28,608,846 $9,060,151 $169,870,161 $170,087,594 



Exports to Cuba 9,903,485 10.205,155 67,948,206 141,216,562 



