Few sales incur speculation tax

Press, Volume CXIV, Issue 33450, 4 February 1974, Page 12

Few sales incur speculation tax

(Neu; Zealand Press .Association.) WELLINGTON. | Less than 1 per cent of recorded property transactions since the introduction of the property speculation tax had involved the vendor in any liability to the tax, the Minister of Finance (Mr Rowling) said.

He was releasing figures on ; the tax up to December 31. Of the 475 cases where property speculation tax had

I been assessed, 399 had arisen in Auckland. Wellington, ! Christchurch, and Dunedin. ! Mr Rowling said that the i Auckland, Otahuhu, and Takapuna tax districts between them had 270 cases, and Hamilton 36. ; The tax assessed to date was $154,505. Mr Rowling emphasised that the function of the tax was as a disincentive to short-term property specultaion, rather than as a revenue raiser. It was probable that the : proportion of cases affected would fall still further, as the figures for the first few months would include sales where the vendor had purchased the property shortly before the introduction of the tax in the expectation of an early sale, Mr Rowling said. In his view the tax was achieving its puroose of contributing towards a stabilisation of the property market.