Untitled

Press, Volume LXXVI, Issue 23088, 2 August 1940, Page 8

Although taxation of State trading enterprises Was introduced in the 1940 Budget, the Government does not propose at present to levy income tax On municipal trading concerns, The Minister for Finance (the Hon. W. Nash), in a letter to the Associated Chambers of Commerce, a copy of which was read at a meeting of the council of the Canterbury Chamber last evening, has announced this decision. The chambers recently asked that taxation of local body trading concerns should be introduced, on the ground that they were in competition with private enterprise. The Min-: istfer,. in his reply, said that the position of municipal trading undertakings was not analogous to that of State trading departments, as the municipal enterprises were mainly municipal .monopolies giving particular service to local communities, whereas the State trading .departments were, in general countrywide in their scope,-and in direct competition with pri- ' * 1*,.!! 1