TAX CRITICISMS.

Auckland Star, Volume LXI, Issue 173, 24 July 1930, Page 10

TAX CRITICISMS.

MR. FORBES' ADVICE.

"WAIT FOR THE BUDGET."

TRUE PERSPECTIVE PROMISED.

CONTRAST WITH AUSTRALIA

(By Telegraph.—Parliamentary Reporter.) WELLINGTON, Wednesday. When the Prime Minister was invited by the ' Star" correspondent to answer some of the criticism of the new Customs duties, he replied that he hoped most of those who had commented on the taxation would revise their opinions , when the position was placed in proper I perspective by the Financial Statement. "I recognise," said Mr. Forbes, '"that it »vas" not the "most effective way, from the Government's viewpoint, of introducing the new taxation, but. we were compelled by the exigencies of the situation to make a new departure. The commercial community,, realising what was imminent in regard to Customs duties, had felt unrest and uncertainty, and it was-considered advisable to end this condition of affairs at the earliest possible moment. The announcement of the proposals a few days earlier did away with the advantages which might have been gained by those who were trying to anticipate the changes, though I must acknowledge that l the warning I issued earlier regarding abnormal clearances has been observed to a very great extent by the trading community. Only in a few instances has there been evidence of what we might call anticipation. "This is not the best time to answer criticism, except to point out that even with the increases which are made we do not expect to collect within £370,000 of the Customs taxation obtained last year. The bill is to come down shortly, and I anticipate a number of representations will be made to me with regard to the effect of the alterations. "Dictated by Necessity." "The Budget will show the necessity for our action, and the way in which the taxation proposals have been spread over the whole community. Then the public will realise that it is not so inequitable as the critics make out. Financial necessities have forced the Government to do unpleasant things, but whatever we have done is mild compared with what has been found necessary by the Commonwealth Finance Minister. For instance, we have not resorted to the expedient of a 2J per cent tax on all sales from wholesaler to retailer. The petrol duty has gone up threepence in Australia, where the total tax is now the same as in New Zealand. While we have abolished the primage duty, Australia lias* put on a primage of 2i per cent. We have replaced primage by a surtax, which is imposed only on dutiable articles, and by removing primage we have taken all taxation off duty-free goods, which are now completely free."