Supermarket prices up

Press, 9 August 1982, Page 4

Supermarket prices up

Shoppers who'have confectionery. stationery; ’ cigar-. ettes, kitchenware, crockery, glassware, records, toys, jewellery, or cameras on their shopping list may find that these items have increased in price at supermarkets. This is the effect of a Budget change in the administration of wholesale taxes aimed at eliminating tax advantages achieved by large .chainstores which have been buying direct from the manufacturers to reduce their tax liability. v However, food and clothing and other items that come into the broad category, “food and shelter," are not subject to wholesale, tax and-will not be affected. To clamp down on. tax avoidance the Budget included provisions to increase

the taxable sale value of goods sold direct by a manufacturer to a retailer. . The director of planning and systems in the Customs Department. Mr Kevari Donovan, said large chains had -been getting an unfair tax advantage over most other retailers who had to get their goods through wholesalers. The Budget measures are estimated to bring in an extra $6O million revenue in a full year. Mr Donovan said businesses were entitled to pass on extra costs resulting from the Budget. "But the fact of the matter is that these chains have been avoiding tax and have not always been passing on the benefits to the taxpayer.”