Tax burden ‘spread’

Press, 7 August 1982, Page 2

Tax burden ‘spread’

PA Wellington The Budget's specific beer and spirit taxes equated to alcoholic strength was the most significant aspect of the Budget for the industry, said the managing director of Dominion Breweries.. Mr J. R. Fletcher, yesterday. The new taxes meant that a start had been made on spreading the tax burden more equably among all alcoholic beverages, something the industry had been seeking. Mr Fletcher predicted that the increase in the price of beer and spirits might see some initial consumer resistance but the personal tax cuts were generally greater and the two probably would balance out.

He said higher beer prices would be seen as hard on the drinker but it was a logical

move for the Government because the mechanism was already there and the additional revenue was so easy to collect. . The Hotel Association said it was concerned about the extent of further tax increases, particularly on beer, but it was encouraged that something had been done about duty rates in relation to alcoholic strength. “For a change, wine is included even though the beer drinker is still discriminated against,” said the association’s chief executive, Mr Tom Sheehy.

“The association welcomes tightening up in the sales tax area and fair market value assessment changes as this has been an area where loopholes have existed and where a number of wholesalers have manipulated the

system for their own devices,” Mr Sheehy said. “We. are particularly interested in the brief refer- . ences contained in the Bud- . get that the taxing of cooperatives might be looked at." i ■ He said the association ' liked to think this provision ! might extend to about 2006 liquor licences existing in \ New Zealand which were not • paying tax arid the majority > of which did not employ I labour. t

“Many of. these chartered and sporting: club licences have substantial turnovers and the association’s view is that any organisation which is competing in the commer-. cial sense should be allowed to do so only under the same terms and conditions .as other commercial traders,” Mr Sheehy said.