Show Processing Tax TaxI I On Sugar Fixed By Government Charge Tj Will Till Be One-Half One Cent Per Pound Effective June 8 on Domestic Beet and Cane Manufacture By Es Associated Press WASHINGTON June 5 Rexford 5 Rexford 5 G. G Tugwell as acting secretary of ot a ag agriculture agriculture ag- ag today set the processing ing tax on sugar at half halt a cent per pound This is equal to the reduction in duty on Cuban sugar and will go into effect at the same time June 8 The tax will be levied on direct consumption sugar from the first domestic domestic do do- processing of ot sugar beets and sugar cane Regulations were also issued set set- ting ing forth definitions conversion factors fac- fac ac tors ors and exemptions from rom the tax Direct consumption sugar was defined de do- fined tined as any sugar to be used for any purpose other than further refining Raw value was defined as a standard unit of oC sugar testing 96 degrees de de- grees by the Raw Value Is Standard All taxes and quotas will be based on an this raw value standard In the case of oC sugar beets the raw value is determined b by multiplying the weight of ot such su sugar ar by Administration officials while admitting admitting ad ad- that the tax possibly will mean an increase in sugar prices to consumers for lor a short time said thain that tha in iii the long run they will vill level out to about the present point A. A A J. J S. S Weaver former head of ot the su sugar ar section declared this is possible possible pos pOSe sible because the price increasing effect ef ef- ef feet of or the tax will be canceled bythe by bythe bythe the reduction in duty on sugar from irom Cuba principal supplier of oC the domestic domestic do do- market Tax Goes to Growers Funds from the processing tax willbe will willbe willbe be used by the farm administration to make benefit payments to sugar beet teet and sugar cane farmers in return return return re re- re- re turn for adjustments in their production tion lion to bring the total supply of sugar this year ear down to about the domestic domes domes- tic tie consumption figure In the case of United States SUites producers producers pro pro- ducer such payments are to be made directly in the form of checks in proportion proportion pro pro- portion to the thc amount of ot adjustment made b by each individual producer Governors of insular possessions have nave been designated to devise plans for or using funds from processing taxes on insular sugar which will be re- re Continued on r rte cc Two TAX ON SUGAR FIXED BY U. U S. S Levy Set at One Half Cent Per Po Pound nd on Domes Domestic ic Manufacture Continued from Pare Pace One turned to the the treasuries of oC the various vari var- ous islands Su Such h funds may be used either cither as direct payments to farmers rs or for the good of ot agriculture generally in the islands Porto Rico Drafts Plan Porto Rico is the only island to have prepared a plan for use of ot such funds and announcement of ot its ith details de de- tails ails is exp expected within a short time Manufacturers Manufacturers' of cane juice or ormo ormo- mo- mo lasses asses who do not produce more than gallons gallons' during any single season are exempted from payment of ot the processing tax Producers ers making up to 1500 gallons will be taxed for any amount over gallons and all manufacturers will be taxed on all aU production I Consumers Will Pay Sugar Processing Tax Predictions that processing taxes on sugar must be pass passed d on iff consumers consumers con con- sumers were made Tuesday by executives ex cx of two intermountain sugar beet manufacturing companies They were R. R T. T Harris president of the Gunnison Sugar company and S. S H. H Love sales and traffic m manager nager of ot the Utah Idaho Sugar company Both statements came after Associated Associated Asso Asso- Press dispatches from Washington Wash Wash- ington D. D C. C revealed plans of the agricultural adjustment administration tion to collect k 4 cent per p-cr pound processing tax on beet sugar Consumer Must Pay PayI PayI I cant can't see how the processing tax can be assumed by the ers said Mr Harris It must and will be passed on to the consumers consumer The manufacturers manufacturer are carrying too much of the load now Mr Harris added that he believes the tax will assure growers grower of ot at least 6 65 50 per ton for lor beets this year He characterized the tax as a fur lur therance of ot fair efforts of the department depart depart- ment meat of ot agriculture to compensate the sugar beet growers for their product Although the government made the statement that the tax would not nol be passed on to the consumer said Mr Love I 1 dont don't know where else it can be absorbed |