Sales tax on boats will not be removed

Press, 24 November 1979, Page 2

Sales tax on boats will not be removed

PA Auckland' The sales tax on boats would not be removed, the Minister of Customs (Mr Templeton) said in Auckland yesterday. Boat sales dropped in recent months as prospective boatowners waited to see if the tax would be changed or lifted. “I can assure the industry and potential buyers that the tax is here to stay,” said Mr Templeton. A study of the boatbuilding industry was being made by the Department of Trade and Industry, but this would not take sales tax into account. “It is true that privately owned constructed boats are not exempt from sales tax if they are constructed in a commercial boatbuilders’ yard. This decision was made because of the impossibility of ensuring that such boats are. in fact, completely constructed by the homebuilder,’’ said Mr Templeton.

“When I made this decision in September, I thought it would be unreasonable to penalise individuals who were building their boats in commercial yards, and I said that provided the boats were removed from the commercial yards by December 1, they would qualify for exemption from sales tax. “What has not been reported,” said Mr Templeton, “is that collectors of customs have authority to extend the date of removal where the particular circumstances prevent the initial

deadline being met,” he said. ' A spokesman for the Boat-| ing and Marine Industries’! i Association, (Mr J. Street)! said later the boating in-1 dustry could not accept Mr Templeton’s decision that i ; nothing would be done. “The Government cannot ignore tvhat the tax has; (done to an already struggl-; ing industry,” he said. ! “On May 7, there was! $2.7M worth of orders on! the books. Since the tax was] brought ip, &1.42 M worth; have been cancelled,” said! Mr Street.