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APPENDIX VII.BOUNTY ON HOME-MADE MINERAL HYDROCARBON LIGHT OILS.Section 5 of the Finance (Miscellaneous Provisions) Act, 1935 (No. 7 of 1935), is the statutory authority for the payment of Compensation Bounties. Mineral Hydrocarbon Light Oils comprise hydrocarbon oils of which not less than fifty per cent. by volume distils at a temperature not exceeding 185° centigrade, or of which not less than ninety-five per cent. by volume distils at a temperature not exceeding 240° centigrade, or which give off an inflammable vapour at a temperature of less than 22.8° centigrade when tested in the manner prescribed by the Acts relating to petroleum. The purpose of the Bounty is not fiscal, but economic. The necessity for bounty arises from the fact that the duty-free price of the imported commodity is less than that of the similar home-produced article. The Customs duty is accordingly arranged to exceed the Excise duty by the amount of the difference, with the result that the duty-paid prices of the imported article and of the home-produced article are the same. After the home-produced article is exported, the trader receives back the Excise duty in the form of “drawback,” and in order that he can place his goods on the foreign market in equal competition with the cheaper foreign goods he is given in addition a “Compensation Bounty” representing the difference between the Customs and Excise rates of duty—2d. per gallon in the case of Mineral Hydrocarbon Light Oils. The bounty was paid to one concern only. (Signed) W. O’BRIEN, Chairman, Revenue Commissioners. 15th November, 1938. |
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