Car firms seek tax change

Press, 17 November 1980, Page 34

Car firms seek tax change

PA Waitangi The Rental Vehicle Association will not rest until the “imposition” of plgnt. sand equ i p m ent depreciation limits on the industry. are lifted, says the association’s president, Mr P. Rhodes. He told the association’s annual conference at Waitangi thgt in spite of renewed submissions to the Government, there had been np practical acknowledgement of the industry’s case for relief from specified cost limitations for depreciation purposes.

“The association over the last year has had considerable and strong support fpr-its case, and it was also a recommendation of the tourist industry advisory council,” Mr Rhodes said. “However, professed under-

standing of the problem has not been followed through by the Government."

In submissions to the Minister pf Tourism in 1978, it )iad been said that no comparable industry in New Zealand contributed so much to overseas tourism but lacked the advantage of any tourist taxation incentives. Nor did any industry run its plant and machinery, ,on a basis where tax was assessed at close to 70 per cent on each dollar of taxable surplus. “On advice from taxation consultants, the association will place submissions before the Government seeking application of the tourist export incentive scheme to the overseas earnings of those rental firms maintaining their own credit card facilities,” Mr Rhodes said.