SALES TAX.

Auckland Star, Volume LXIV, Issue 114, 17 May 1933, Page 5

SALES TAX.

LARGE REVENUE YIELD. MAY EXCEED ESTIMATE. (By Telegraph.—Own Correspondent.) WELLINGTON, this day. The receipts of the Customs Department from the sales tax for the first period of its operation seemed to demonstrate, from the figures in the four chief centres, that this is going to produce bumper returns. The official estimate of the yield per annum is £1,500,000, but if the proportion of the first period could be maintained, this would be nearly doubled. However, inquiries show that such optimism is not justified by the facts. The period was more than a month, the tax commencing on February 9, and the returns covering the period till March 31. Another reason why the first returns cannot accurately indicate the ultimate result is that sales tax is levied at the wharf where retailere do their own importing. Tims the receipts from this source are paid in bulk, while the main source of sales tax revenue, on the transactions between wholesaler _ and retailer, only come in as the business is being done from day to day. It has been found that the new tax is being collected without eerioue difficulty. Many of the early problems have been smoothed out in actual experience, and Customs officers are highly appreciative of the helpful attitude of traders. They recognise that the tax has to be paid, and they show a ready desire to comply with the law's requirements, added to which is a good deal of wise diplomacy on the part of the Customs authorities.