Import Duties Act 1932 facts for kids
| Act of Parliament | |
|
|
| Citation | 22 & 23 Geo. 5. c. 8 |
|---|---|
The Import Duties Act 1932 was an important law passed by the UK Parliament in 1932. This Act introduced a new 10% tax, called a tariff, on most goods brought into the country. However, some items like food, raw materials, and goods from certain parts of the British Empire were not taxed. Countries like India and other British Dominions were also free from these taxes for a short time. This was meant to last until a big meeting, the Imperial Economic Conference, could decide on a special trade system for the Empire.
Contents
Why the Act Was Created
The idea for this law came from the Chancellor of the Exchequer, Neville Chamberlain. He introduced the bill to the House of Commons on February 4, 1932. Chamberlain saw this law as a way to finish the work his father, Joseph Chamberlain, had started many years before. His father had campaigned for similar trade reforms.
How the Bill Became Law
After Neville Chamberlain's speech, the bill was put to a vote. It passed easily in the House of Commons with 454 votes in favor and only 78 against. The Labour Party and some Liberals were against it. The law officially started on March 1, 1932.
How the Tariffs Changed
The Import Duties Act also created a group called the Import Duties Advisory Committee. This committee could suggest increasing the tariffs on certain goods. Soon after the Act was passed, the 10% tax was raised for many items. These new taxes ranged from 15% to 33%.
What Happened Because of the Act
Many experts believe this Act had a big impact on Britain's economy.
Boost for UK Manufacturing
According to an economist named Nicholas Kaldor, these new taxes encouraged people in the UK to buy goods made in Britain instead of imports. This helped British factories make more products. Between 1932 and 1937, the UK's manufacturing production grew by 48%. This was a very fast rate of growth for Britain.
Economic Growth
Kaldor also said that Britain's overall economic output, known as GDP, grew by 4% each year during this time. This made Britain one of the fastest-growing economies in the world.
Steel Production Increase
A good example of this growth was in steel production. In 1932, Britain produced 5 million tons of steel. By 1937, this had jumped to 13 million tons. This was much higher than the 9 million tons produced in 1929, before the Great Depression.
