THE SALES TAX.

Press, Volume LXIX, Issue 20919, 28 July 1933, Page 17

THE SALES TAX.

' TO THE FDITOR OF THE PEESS. Sir,—l read with interest a recent . article in "The Press" on the sales : lax, and from personal experience I | can confirm the statements as to the ; very serious effects this extraordinary : tax is causing. It has always been a ' mystery to me why a few trades should . be singled out io bear this crushing ; impost, and many other go scot-free, and surely our parliamentary representatives did not realise the injustice they were causing when they passed the measure in such a form, and alI lowed so many exemptions. Speaking for the trade in which I am personally engaged, which hap- | pens to be one of the very hardest i hit by the depression, that is, the tailoring trade, J can state emphatically that it is impossible to collect, this extra impost in the price to the customer. Prices are already cut to much below a profitable basis, competition being so keen, and I would be surprised indeed to know that any tailoring firm is existing to-day except by living on its capital. In prosperous times any firm making a net profit of 5 per cent, on its turnover is considered to be doing well, but if this were suddenly taken away by a sales tax you can imagine the outcry that would be caused. How much more evil, then, is such a tax at a time when heavy losses are the rule? To many firms it must mean closing the doors, sooner or later. I regard this sales tax, as at present imposed, as the most iniquitous measure ever passed, and coming on top 'of the high exchange it is simply killing business. Reckoned as an extra duty on the Home price of goods (as it is v collected by the Customs Department along with the ordinary duty when gooas are cleared), the sales tax works out at 91 per cent, on woollen piece-goods, and 7J per cent on linings, and goods that formerly cost 30 per cent, to land now cost from 65 to 70 per cent. Well might John Bull rail against us! Talk about Empire trade and reciprocity; what hypocrites we are! —Yours, etc., A DISGUSTED NEW ZEALANDER. July 27, 1933.