Sales tax to help rates?

Press, 14 August 1978, Page 2

Sales tax to help rates?

Rates relief might come in the form of sales tax under a National Government. The Minister of Local! Government (Mr Highet) (' said in Amberley on Friday; that he was interested in having a close look at sales tax, particularly at the retail (level. • He was opening the new $400,000 Hurunui County! (Council offices. “My personal opinion is that ratepayers, particularly in cities, are paying as much as they can afford in rates,” • Mr Highet said. ; “We must find alternative sources of finance. I am a great believer in the ‘user pays’ principle and in taxing ((the spender rather than the saver and the earner.” ( Mr C. N. Mackenzie, the County Chairman, suggested in his address that a “relatively painless” source (of revenue was a sales tax (shared between the State andj local authorities. ! I “Here in New Zealand we; (haven’t shared in any State; (tax, but, 1 believe the day! (is approaching when the; State will have to share some! revenue,” he said. Mr Mackenzie also outlined an accommodation tax structure as used in the United States. Mr Highet said an accommodation tax could not be introduced in the meantime. Nor could revenue be shared' between central and local (■ governments. “But we mast continue to look at this. T can see that;! within the next decade we! will be sharing revenue.” Mr Highet assured the 300; I guests at the opening that; petroleum tax areas would ( not change in spite of! regional reorganisation by; the Local Government Com-|1 mission. He was answering Mr; Mackenzie, who said there appeared to be every likelihood that in future petroleum tax areas would be changed to coincide with regional boundaries. If this happened the Hurunui Council stood to lose between $23,000 and i $25,000 in petrol tax every year, Mr Mackenzie said.