Taxation policy

Press, 29 December 1980, Page 16

Taxation policy

Sir, — Some of your correspondents advocate a turnover tax. If, for example, a farmer sold a sheep to a freezing company, which then sold it to/the public, then the sheep would figure in the turnovers, of both the farmer and the company. Hence it would.- be taxed twice. If, however 5 , the freezing company owned the farm; then it would be taxed only once, so the freezing company would be able ..to sell the sheep cheaper and still make a bigger., profit than the total profit earned by the company and the farmer in the first case. Hence a turnover tax would help large, vertically integrated companies (and these are mostly multinationals) to undercut small businesses. There are already enough things that arti-

finally discriminate against small businesses, without adding a turnover tax. The pro-turnover tax lobbyists probably identify themselves with small businessmen, but have not logically followed their ideas through. — Yours, etc.

I. C. RING December 25, 1980.