'Disastrous' travel tax

Press, 15 October 1976, Page 17

'Disastrous' travel tax

The time was long overdue for the Government to admit it had made a disastrous mistake in imposing a travel tax, said the Opposition spokesman on transport (Mr J. N. Kirk) on Wednesday. ‘‘The whole scheme is riddled with anomalies and injustices,” he said.

‘‘One of the worst aspects is the Government’s decision to apply the tax to the total fare paid by cruise passengers—in spite of the fact that only about half the value of the ticket is taken with travel costs. This means that cruise passengers pay the extra tax on accommodation. meals, and entertainment as well.

‘‘The results of this greedy and ill-conceived policy are very clear already in the reported marked drop in cruise bookings.” Mr Kirk said. There were predictions by the president of the National Travel Association that cruise ships might soon stop 'coming to New Zealand altogether.” he said. “Furthermore, the loopholes in the tax are allowing the more affluent travellers to avoid any payment at all by paying for their travel overseas, adding to the drain on overseas funds,” Mr Kirk said.