Tax claim rejected

Press, 31 March 1981, Page 25

Tax claim rejected

PA Wellington The Deputy Minister of Finance (Mr Templeton) has rejected Labour Party criticism that big companies were paying litle or no tax. He said 47,000 companies paid no tax, about 26,000 paid up to ($lO,OOO, 7000 paid up to $1 million, and the remaining 142 companies paid more than $1 million, in 1977-78. "In fact, these 142 companies pay-4$ per cent of all company tax, or $194 mil-

lion out of $452 million. So it is quite clear that big boys pay their taxes,” he said. He aslo rejected an assertion by the Labour member for Auckland Central (Mr R. W. Prebble) that New Zealand had the highest taxes in the world and that income tax was “essentially voluntary” for the rich. “With such a small population, everybody has to share the tax burden if they want the services of a modern State. This burden is

spread across the entire population. Everybody is involved. “The Government is concerned that levels of taxation should be held and its aims to reduce the pressure year by year by restraining the demand for . expenditure,” Mr Templeton said. “It also has to be remembered that in New Zealand income taxes are higher since the range of taxes is more limited.”