Exporters to get more aid

Press, 4 January 1978, Page 14

Exporters to get more aid

PA Wellington ‘‘The Government’s present review of export incentives has recently thrown up a particular problem for some exporters, according to the Minister in Charge of the Inland Revenue Department (Mr Templeton). “The problem has arisen for some exporters who have been unable to benefit directly from the present tax incentives for increased exports,” he said. “As a result, they have tried to overcome this by channelling their exports through other sources, instead of exporting directly. There is a doubt, however, whether the tax provisions allow the benefit in these circumstances, other than to genuine exporters and export houses.”

The Government was prepared to take holding action on the matter so that export orders could be met over the holidays, said Mr Templeton. “This problem is . being looked at in the general review of export incentives, but in the meantime we do not want to lose any export orders through uncertainty about the present position,” he said. “The Government is therefore prepared, as an interim measure up to March 31, 1978, to give any necessary validation to existing arrangements for exporting through intermediaries where these have been entered into in good faith. Decisions on outstanding applications for approval will be given on a similar basis.”