AMUSEMENT TAX.

Auckland Star, Volume LXI, Issue 174, 25 July 1930, Page 8

AMUSEMENT TAX.

SHILLING TICKETS PAY.

HIGH DUTY ON FILMS,,

15 PER CENT ON FOREIGN.

PREFERENCE TO BRITISH. j

(Br Telegraph.—Parliamentary Reporter.)

WELLINGTON, Thursday.

The people's pleasures are to be taxed severely if the Budget proposals are carried into effect. An amusement tax is to be imposed, and heavy additional taxation will be placed on film, substantial preference being given to the product from British studios.

The> Budget introduces the tax on theatre tickets -with the following statement: "To further assist in providing the additional revenue necessary to balance the Budget, it is proposed to reiinpose the amusement tax on payments of 1/ or more for admission to any entertainments. This was the position prior to 1924, when the exemption was raised to the present, amount, 2/. On 1/ admission price the tax will be Id, from 1/ to 1/0 a tax of 2d, and on higher charges Id for every shilling or part of a shilling, plus an additional penny; as at present." Ad Valorem Tax on Films. The Prime Minister (the Hon. G. W. Forbes) has the following statement in his Budget concerning the duty payable on sound-films: "'ln connection with the amount of additional revenue which it was deemed advisable to obtain from indirect taxation, I may say that in preference to other things it was considered that additional duty should be placed upon cinematograph sound-films. As the value of films varies a great deal, to be equitable any increased taxation should be upon an ad valorem and not a. footage basis. The difficulty here, however, is that the value of a film is not known when it comes over the wharf.

"In thi-; connection it may be explained that films are not sold, but are rented to the theatre proprietors, usually for a perc-entage of the- gross theatre takings. Further, films are not dealt with singly, but in groups or 'blocks.' Under these circumstances an ad valorem Customs duty in the ordinary way is Hardly practicable but it is proposed to impose the equivalent of an ad valorem duty in the shape of a film-hire tax.

'•'Briefly, the proposal is that the film-distributin? firms will be required to make monthly returns to the Commissioner of Taxes of the gross rentals received from sound-films and the administration expenses incurred in New Zealand, oominc-ncing from Julyl last. After deducting these expenses, and also the percentage of gross rentals upon which income tax is levied, the residue will represent the value of the film, on which will be levied an ad valorem tax at the rate of 10 per cent in the case of British films and 23 per cent in the case of foreign films. 1 '