Customs bill unfair, says Sir Robert

Press, 9 November 1984, Page 6

Customs bill unfair, says Sir Robert

PA Wellington The Opposition vowed last evening to oppose vigorously legislation which increases duty and sales taxes on alcohol, tobacco, and motor spirits and reduces it on computer equipment, records, cosmetics, and caravans and boats.

The Leader of the Opposition, Sir Robert Muldoon, said the Customs Acts Amendment Bill was thoroughly unfair. The bill, introduced by the Minister of Customs, Mrs Shields, was the first measure debated by members after the reading of the Budget. Members were expected to sit through the night to pass legislation. Sir Robert said the National Government had proposed to increase the price of liquor about 4 per

cent. The increase was about double that, he said. He was particularly critical of increased costs in the price of cigarettes, saying that smoking was one of the little pleasures for large numbers of housewives.

Those people who smoked would now pay more tax for cigarettes so that someone could buy computers and caravans more cheaply, said Sir Robert. The increase was about three times more than the previous Government had intended to make.

Mr P.C. East, (Nat., Rotorua) said the increased sales tax on wine was a “kick in the teeth” for an industry that now had to compete with Australian wines under C.E.R.

Mrs Annette King, (Lab, Horowhenua) said the bill stopped penalising young

people and women by reducing the sales tax on records and cosmetics.

But Mr W. F. Birch, (Nat, Franklin) said it was a Labour Government that introduced the tax on cosmetics.

He said the National Government had given a clear undertaking that it would not increase the tax on L.P.G. and C.N.G. as Labour had now done.

He predicted that the increased motor spirits duty would be given to the National Roads Board to offset cost increases because of devaluation.

Social Credit’s deputy leader, Mr Knapp, said the bill broke Labour promises. Labour had led the public to believe the sales tax on caravans would be removed, not just “anomalies”, he said.