Film tax ‘will kill orders’

Press, 12 July 1980, Page 3

Film tax ‘will kill orders’

PA Auckland Two Auckland companies seem certain to lose export orders valued at 5500.000 a a result of the 40 per cent tax on photographic film imposed in the Budget. Colorite Reproductions. Ltd. and Business Printing Works. Ltd. have contracts to supply Australian companies with photographic work and printed matter but they say that the increased cost of film has made their products uncompetitive and their clients are certain to cancel contracts.

The manager of Colorite Reproductions (Mr W. M. Payne) said the company's efforts to gain export orders had been wasted because of the tax. ■'All the hard work we’ve done over the last 10 years can be written elf at the stroke of a pen," he said. His company had completed a $.300,000 deal with an Australian company only two weeks ago but the increased costs caused by the tax meant that the Australian firm would probably cancel the contract.

The general manager oF Business Printing Works (Mr B. C. Ritchie) said, "It's silly to encourage us to go out and get exports and now, in one foul swoop, they’re gone.” He said the C ivernment appeared to have imposed the tax without considering how. much film was’ used in . the printing industry.