TAX REDUCTIONS

Ashburton Guardian, Volume 66, Issue 255, 9 August 1946, Page 3

TAX REDUCTIONS

IF LABOUR IS REELECTED INDIRECT RELIEF (Special from C. R. Mentiplay, Representative of N.Z.P.A.) (Rec. 11.30 a.m.) SYDNEY, This Day. News that, if re-elected, the Labour Government intends to reduce indirect taxation by £18,000,000 a year offers some solace to citizens who regard the recent concessions of £17,500,000 in direct taxation as niggardly. The proposals have not yet taken definite form, and there is. still the election to be faced before the promised prize is won. The feeling that such reductions are not before their time is supported by figures which show that last year, in indirect taxes included in the prices of goods an'd services, Australians paid the Government £144,000,000. This, of course, was after meeting direct taxes amounting to £215,000,000. This terrific loading on the entire population is actually borne by the Commonwealth’s 3,500,000 wage-earn-ers, of whom 80 per cent earn £S a week or less. Last week Mr P. C. Spender urged the Government to remove the sales tax and reduce the company tax. Because of the incidence of indirect taxation which falls on household goods, food, manufactured items, petrol, tobacco, beer and spirits, postal services and other everyday things, it is plain that remission here would confer greater benefits on the working man and his family than a reduction of income tax. In fact, indirect taxes represent £2J 15s of £49 paid by each member of the community out of an average wage of £247. The little man sees income tax as the biggest hurdle. Actually each Australian pays £6.# a year for excise, £2.75 for customs, £4 for sales tax and £T for entertainment tax. What Taxpayers Lose In excise, 73 per cent of the value of every gallon of beer invoiced by the breweries went to the Government with the result that the taxpayer buys one schooner for the price of two. But for excise and customs, a lOd packet of cigarettes "would contain 29 instead of 10 cigarettes. Four of every nine matches are struck on behalf of the Government. Private motorists lose petrol foi 3J miles in every 100 as a result of duties included in the price of fuel. . It is pointed out that Australia is not the heavy protectionist people may imagine. Last year half the imports for civilian use entered free, but on items that were taxed the duties were solid. . . . . The Government campaign wmcn shouts from every hoarding, “help keep prices down,” would receive heartening support if the Government removed or lightened some of "pilous taxes and levies which have helped create an artificial level of retail P t§il''existing system of controls Would-be adequate to see that advantage was passed on immediately to the public. _______