Possible Effects Of Budget

Press, Volume XCIX, Issue 29264, 23 July 1960, Page 14

Possible Effects Of Budget

WELLINGTON, July 22. The effect of the reduction in sales tax on motor-vehicles is likely to be an immediate reduction in the price of cars and trucks. There had been fears that where sales tax had been paid on cars now available that would be just so much loss, but it is understood there is an arrangement that sales tax be paid at the time of sale. The price of cars is still controlled, but the Trade Practices and Prices Authority is expected to make an early announcement on the effects of the reduction.

At one point the Government is understood to have examined the possibility of limiting the reduction to certain classes of trucks or to commercial vehicles, •but considerable administrative problems were encountered.

The reduction of petrol duty by 2d is a concession worth £2.200.000. Last year’s reductions »f 8d lost the revenue £9 million. It should not be long before details of the development bonds scheme of savings are announced It will be in line with the United Kingdom defence bonds. There, a 15s bond is worth £1 in seven years. No indication has yet been given of the term or the rate of interest or the tax concession.

Both wholesalers' and retailers’

(New Zealand Press Association)

margins are likely to be Increased as a result of the reduction in excise duty on cigarettes and tobacco. Both groups have been pressing for some time for an increase in their margins, which were seriously affected with the 1958 Budget. The authority is expected to issue an early order that will increase margins. The capital disqualification on Social Security benefits applied automatically to age and invalids’ benefits and. at the discretion of the commissioner, to unemployment benefits. This disqualification was eliminated from all benefits from October 12 by the Budget. The disqualification applied to cash assets but not to land, cars and personal effects. It meant a reduction in benefit of £ 1 for every £l5 over £570 in cash held by single persons and over £l5OO by married persons.