Sales tax on heaters

Press, 28 May 1983, Page 14

Sales tax on heaters

Sir,—l was pleased to read that the Young Nationals are concerned about the smog problem in Christchurch. I would be interested in their comments on their Government’s imposition of 10 per cent sales tax on domestic electic heaters and clean air burners in May, 1979. — Yours, etc., M. A. WILSON. May 17, 1983. [Mr Alistair Bell, divisional chairman, Young Nationals, replies: “I thank M. A. Wilson for supporting the Young Nationals’ initiative on the smog problem in Christchurch. We believe that a

short, sharp investment into clean air by the Government would motivate and encourage Christchurch citizens to use electric heaters rather than open fires. To rid us of unsightly and ill-health-causing smog would enhance our quality of life. The 10 per cent sales tax on domestic electric heaters applies to all electrical appliances for domestic use. That? is a revenue source for the Government and imposed for that reason. I see as impractical the lowering of that tax solely for Christchurch. Tax is virtually levied as the heaters leave the factory. However, the interest-free loans for buying heaters and blocking off fireplaces, are currently ineffective. If the price of electricity will not be dragged down, and it should be, then interest-free loans need increasing significantly, in the interest of Christchurch.”]