‘Greatest tax rip-off’

Press, 3 May 1977, Page 7

‘Greatest tax rip-off’

PA Auckland: The Government claim that the reduction in the internal deficit wa» an economic sue- < esa was “the greatest rax rip-off of all time,” said the Leader of the Opposition (Mr Rowling i on Sunday. He told Labour Party ral-' lies at Mount Wellington and Penrose that the reduction in the last financial scat to 5.508 M had really been caused by a big mistake in the tax take. “The Minister of Finance has taken far too much tax ui, about 5367 M more than he budgeted for in late July. 1976,'' ne said. "That must be the rip-off of the year.” Mr Rowling said that with out the extra tax, the deficit would have been much higher. The Government had taken $4OO more from each New Zealand family in the last financial year.

I: "We have cut the deficit,, 'they say. but they have really' l cut the people’s throats,"! I (said Mr Rowling. He said that the Govern-1 • mem hud forecast direct tax-( ! atlon lor last year at $2659M ' and indirect taxation at $Bl9 million, In fact, the figures to March 31 showed direct! I tax receipts of 52829 M and i indirect receipts of SIOI6M. | > “Only a National Govern-' i ment could make a mistake i like that and then claim a major success," said Mr • Rowling. "Nothing could t more clearly demonstrate the i need for tax reform than this .!colossal mix-up." i Mr Rowling said that-the latest overseas exchange; transactions showed an' t equally appalling result, i March. 1977, had had record] i exports hut had also seen: » record imports and the deficit 1 ' was once again gening worse.

~ In the year ended January (31, it hacf been SS7OM but it 'iwas now back to SS9OM. i "When you look at the derailed figures, exports are up .88 per cent on what they ['were two years ago," said i Mr Rowling. “That Was the 11 export boom Labour was :! working for. If we had re-1 I mained the Government, our (deficit would have been al- ■ I most wiped out.” t! Mr Rowling said that underi ; National, import payments " had risen by $1241M, showHing that its 1975 promises i; were much wind. i “The result is that our external deficit is not. only far t too high, but is getting t! worse,” he said. i 1 He said that if this was .'the best the Government II could do when export prices 11 were high. New Zealand was Jin for a worrying 18 months ; as export income started to slide.