Tax clarification sought

Press, 4 August 1976, Page 2

Tax clarification sought

PA Hamilton | The new 10 per cent tax on fates overseas might be 1 costly on airlines and their empl jyees. Air New Zealand is trying to get clarification from the Customs Department as to whethei the tax will apply to pilots who fly as passengers to various places in order to pick up aircraft, and whether it will apply at the full rate to employees) and travel agents who are allowed special "privileges,"!

;as low as 10 per cent of the! normal economy fare. If the tax does apply to I pilots on positioning flights, h i it will cost the airline hun-|] idreds of thousands of dol-ri liars. 11 For instance, in order tori fly two pilots to Los I Angeies the airline would) I have to pay a tax of $132.! Scores of pilots fly eachli week on positioning flights, j If the tax were applied at ; the iii’l rate to the special ‘ .fares bought by employees ■ and travel agents, it would i (double their fares. i

I For instance, an ) | employee, who has been with lan international airline can I (fly return from Auckland to! {London for $lB3 — 10 perl I cent of the normal economy! •fare. If he were charged 10l per cent tax at the normal! {fare rate, he would now pay! j $366. '! ; All Air New Zealand) I employees now seeking! ! privilege fares are being); asked to sign indemnity) forms agreeing to pay the 101 per cent on the normal fare,! if that is the Government’s; intention. •