Tax Policy Criticised

Press, Volume CI, Issue 29798, 14 April 1962, Page 10

Tax Policy Criticised

(Ai.Z. Press Association) NEW PLYMOUTH. April 13. Concern at the extremely “unreceptive attitude” of the Government to submissions made bv the Associated Chambers of Commerce on various taxation questions was expressed by the annual conference of the chambers at New Plymouth today.

"We are not unmindful of the weight of problems which have confronted the Government in the handling of the country’s difficult economic situation since it came into office, and we have no desire to adopt -an unduly critical attitude in regard to the matters with which we are specially concerned,” said Mr J W. Holley (Dunedin). "But we are bound to say we had confidently anticipated some more favourable and positive reaction to our representations from an avowed free-enterprise administration,” he stated. The conference approved a remit that “In order to ensure that taxation policies do not act as depressive influ-

ences in economic development. but rather aid and stimulate. this conference urges the Government to provide incentives to encourage taxpayers to contribute to the strength of the economy, to increase productivity and the rate of capital growth.”

The conference recom. mended that the Government be more liberal in allowing deductions for development expenditure in its widest sense in arriving at an assessable income: increase the level of depreciation rates on buildings, plant and equipment: grant exemption from excess retention tax in

respect of funds expended ot or reserved for, expansion <■ development, and provide centive allowances for ex penditure incurred in pronto*, ing overseas markets

Mr Holley said the executive found it difficult to avoid the con fusion that many of the Government's past d< cisions on such questions had tended to be unduly coloured by the views of Inland Revenue Department officials with an inevitable emphasis upon the “salary or wageearner concept of things" but lacking the weight and authority of hard-earned business experience.