Land tax change ‘needs explanation’

Press, 17 August 1981, Page 10

Land tax change ‘needs explanation’

PA Wellington The change in the level of land tax imposed in the last Budget needs a great, deal more explanation than has been given, according to the president of the Chamber of Commerce, Mr Allan Williams. “This tax is calculated to extract $2l million from commercial and industrial landowners this year. The only reason given, in the Budget text iskthatthe Government has decided that.'it would be appropriate for such persons to make larger contribution to the funding of Government activities’,” he said. “This legislation will be retrospective to March 31, 1981. Retrospective legislation is highly s objectionable and has always been resisted by the Chambers of Commerce. In the-present case, no reason is given for backdating the savage increase in land tax. “Quite apart ’ from the re-

trospective aspects, most companies have already completed their accounts for the March, 1981, year and provision for the backdated tax must come as an additional impost on already scarce funds. The increase ir tax can be about 10 times what it was previously.”