Wage Tax Changes

Press, Volume CIV, Issue 30916, 24 November 1965, Page 4

Wage Tax Changes

The Government should increase the investment allowance on manufacturing plant to .30 per cent, the same as the British figure, said the president of the Canterbury Manufacturers’ Association (Mr C. W. Mace) at the association’s monthly council meeting.

The lime had come, he said, when the Government must be realistic and do something positive on giving greater investment allowances to allow for capital erosion. “In doing this they will not only encourage manufacturers to modernise their plants but because of the present rapid technological developments, that in turn will allow manufacturers to produce goods more cheaply and more competitively with overseas,” said Mr Mace.

The association adopted a resolution that an approach be made to the Minister of Finance (Mr Lake) and his advisers on the subject, as well as leaving it in annual tax submissions.

This subject, said the resolution, could also include depreciation and retention tax. which were also major problems of a large percentage of the association's members. Mr R. H. Stewart objected to the fact that excess retention tax still applied to private companies. He thought that when private companies had paid their tax, they should be free to do what they liked with their money.