Less records tax?

Press, 19 April 1980, Page 6

Less records tax?

PA Wellington /The Minister Of Customs and Deputy Minister of Finance (Mr Templeton) yesterday held out the possibility of a reduction in the 40 per cent sales tax on sound recordings. After a meeting yesterday with a deputation from the Recording Industry Association and Government officials, Mr Templeton said the discussions had been “very useful.” “I have obtained some new ideas, it is a matter of finding a sensible level of tax if we decide that the present tax is too high. I am prepared to review it and to be convinced,”<he said. ’ Asked how his attitude fitted with, that of the Prime Minister (Mr Muldoon), who on Thursday said any reduction was unlikely because records were “a luxury item,” Mr

Templeton said, “We would all agree that records are not essential, but they, have a cultural element that could be expanded on in term of employment and exports.” The Minister said the question would be looked at in the context of present budget discussions. This would include the possibility of the local recording industry having full access to export incentivies and other industry aids. The likelihood of increased record sales making up'for any loss of tax. at the 40 per cent level was a strong point in the association’s argument, he said. .'if" I ''

The' president of ■ the Association (Mr T. Murdoch), when asked if the reduction of sales tax would be passed on to the public, said/ “that is a

complicated matter, but the public certainly would benefit”

A' submission released by the* association yesterday, as part of its longrunning campaign against the tax, said its main objective was to advance the development of a viable sound recording industry to sustain' New Zealand’s entry and expansion into the -lucrative international music market By continuing to tax sound recordings at the present high rate, the Government was only encouraging the public to tape privately sound recordings, the submissions said. . “As a result, the Government runs *he real risk of pricing records off the market and doing irrepairable harm to the expression of New Zealand’s musical culture,” it said.