AMUSEMENT TAX.

Auckland Star, Volume LXI, Issue 196, 20 August 1930, Page 11

AMUSEMENT TAX.

1/6 TICKETS NOT TO PAY.

EXTBA ONE PER CENT ON INCOME TAX. MAKING UP THE DIFFERENCE. (By Telegraph.—Parliamentary Reporter.) WELLINGTON, this day. The amusement tax of 2d is not to be levied on 1/G admission tickets, according to a decision reached by tho House of Representatives this morning. Tho deficiency in revenue will "be made up by an additional 1 per cent increase on the income tax.

The subject had been raisct by 'the Leader of the Opposition, the Rt. Hon. J. G. Coates, and Mr. P. Eraser (Wellington Central) during the committee stage .of the Finance Bill. The case made out by. Mr. Fraser ' : was that the feeling of the House /was that the tax on ; those tickets should be ■ [ dropped. They represented, he said, the price paid for tho entertainment mainly of working , mothers and ■ their children, and tho House did not want to see their recreation, hard-won as it was, suffer. He understood the tax on those tickets was estimated to produce £40,000, and he was confident that the majority of the House would willingly assist the Government to obtain that revenue from other sources.

The request was supported by Mr. A. Harris (Waitemata), who said the tax on 1/0 tickets would cause more individual hardship than any other of the taxation proposals. Tho revenue would not be seriously affected, and the Prime Minister would be acclaimed if he decided to drop the tax. There was the possibility of picture theatre proprietors reducing the price of admission to 1/5, and under those conditions the Government would lose the whole of the revenue estimated.

Mr. J. A. Nash (Palmerston North) suggested that the tax on 2/-tickets; be increased to 4d to,make up the revenue.

The Prime Minister, the Hon. G. W. Forbes, said that the taxation on 1/G tickets was estimated -to prbduco-be-tween £35,000 and £40,000. Of..' course, the amount, depended upon the. attendances.. It had been clearJy indicated that it was the wish, of the House that 1/0 tickets should be exempt from 1 tax, and, of course, the loss M revenue would have to. be made up in another'direction. The only method of doing that would bo when the taxing bills appeared.

Mr. W. D. Lysnar (Gisborne): You had better leave it alone, then. "(Laughter.)

Mr. Forbes said he was quite willing to exempt the 1/0 tickets, as it was the wish of the House.. He thought, the imposition of an extra 1-, per cent on the income tax would mak© up the ficiency in revenue. ■■ •'o*'.'; Mr. Nash: Why not tax the higherpriced tickets? . ~ The Prime Minister, on definitely announcing that the- tax on 1/6 tickets would be dropped, said it had been imposed with reluctance, Mr. Coates agreed that the Prime Minister had done a ; wisc thing to drop tho tax, but he protested against Mr. Forbes threatening to increase the land or incomo tax further-to;make ; ,iip the deficiency. '"' "Wei goingup with that," he added; V- . '• '-'. Mr... Forbes said he had desired to let tho House know exactlyi what he intended to do, yet Mr, Coates had accused him of threatening.the Opposition. All along he had tried to divert additional imposts from incomes, vbut the Reform opposition to the proposals in the Finance Bill had tended to drive him to taxation of incomes. ""

The Hon. W. D. : Stewart./(Dunedin West) 6uggested' that the /revenue might be made up by. a. special : stamp issue for the Islands-'' 'attached to " New Zealand. . •.■■ ;, r;.. The-'-House- agrcedrto the 1/6 tickets being exempted. ' **!'.'