COMPANY TAXATION.

Auckland Star, Volume LXIX, Issue 192, 16 August 1938, Page 11

COMPANY TAXATION.

FLAT RATE SUGGESTED. PBESENT SYSTEM OPPRESSIVE. (By Telegraph.—Own Correspondent.) WELLINGTON, Monday. Reference to the taxation of manufacturing companies operating in New Zealand, employing New Zealand labour and using New Zealand materials, was made to-day by Mr. W. H. Barber, chairman of the Wellington Woollen Manufacturing Company, in his address to shareholders. "In so far as I am aware," he said, "it has not yet been demonstrated that a Government can create prosperity, although the claim is made and often stressed, but fact is established, that a Government can retard or prevent it by excessive taxation. Where is the authority for the infliction of oppressive taxes, with their incidence fixed apparently not without a sense of discrimination against business firms, which, it would seem, are to be treated without any consideration as if they are more or less public enemies? Restraint of productive activity directly affects the workers, as it results in lost opportunity for many .of them. "If industrial companies were to be taxed on a flat rate of, say, 2/6, instead of by a graduated scale, it would be a great help to both workers and employers. I think it is agreed by, most New Zealanders that the development of manufacturing is essential to the general welfare.*"^