SALES TAX.

Auckland Star, Volume LXIV, Issue 289, 7 December 1933, Page 5

SALES TAX.

PAYMENT BY DEPARTMENTS

VALIDATING LEGISLATION - . I (By Telegraph.—Parliamentary Reporter.) WELLINGTON 1 ", this day. Legislation to validate the payment of sales tax by Government Departments on goods purchased by them is to come down this session. Reference to the existing situation is contained in the annual report of the Controller and Auditor-General who points out that the Sales Tax Act does not bind the Crown, and consequently no sales tax is legally payable on purchases made bv the Crown.

After the passing of the Act vouchers were received containing claims which included sales tax against the Crown, but as the terms of the legislation did not enable the vendor to impose the liability the claims were disallowed by the Audit Office. Representations were made to the Government as to the difficulties which were being experienced by suppliers consequent on claims being disallowed, and payments were then passed by the Audit Office, on receiving an assurance from the Prime Minister that the necessaiy validating legislation would be introduced during the next ensuing session.