Govt told to rectify its forestry tax ‘blunder’

Press, 14 January 1986, Page 33

Govt told to rectify its forestry tax ‘blunder’

PA Tauranga The new forestry tax was a blunder which would cost “thousands of forestry workers their jobs,” according to the National member of Parlament for Tarawera, Mr lan McLean. The Minister of Finance, Mr Douglas, must urgently “fix the blunder,” said Mr McLean.

Retrospective taxes on farming were a deliberate move by the Government but the forestry tax was a blunder, he said.

“The change announced in the economic package makes forestry the only business which effectively pays tax on gross turnover,” Mr McLean said. “Other businesses pay tax on net income. “The new law will apply to land bought by forestry companies from now, and to all land planted after 1986.” “Forestry companies would be forced to clear every bit of bush they owned and plant it this year irrespective of whether they

wanted to, Mr McLean said. “Exchanges of land between forestry companies and the Lands and Survey Department to create new reserves will become impossible. “Urgent action is needed and the matter cannot wait several months for the review committee to do its work.” Mr McLean challenged Mr Douglas to make public all the Treasury and Forest Service advice that led to the decision.