INCOME TAXATION

Dominion, Volume 20, Issue 17, 15 October 1926, Page 8

INCOME TAXATION

DIFFERENTIATION AGAINST FOREIGN GOODS MANUFACTURERS' REJECT PROPOSAL Dominion Special. Christchurch. October 11. The New Zealand Manufacturers' Federation does not desire any alteration in the method of income tax, and to-dav did not approve of tlie following motion from Auckland: — “In order to encourage trading within the Empire, this federation recommends that the income tax regulations be amended so as to provide a differential scale of taxation based on the percentage of New Zealand, of British, and of foreign goods used in trading.” Two big questions, said Mr. G. Finn, were liow to trade within the Empire and how to secure, the best prices for products without increasing the cost to the consumer. Of £32,000,000 worth of imports in eight .months, £10,000,000 had come from foreign countries, to which only £5,000,600 worth of goods had been exported. Protection must be the policy of this country, for without it we should be for all time hewers of wood and drawers of water. Taxation should not be levied only for political expediency or for revenue. From the seller of foreign goods the country was entitled to a reasonable Customs duty and a proportion of the returns. Teii per cent, should be allowed for the percentage of New Zealand goods; Empire products should be as at present ; and 50 per cent, should be levied on foreign goods. Mr. T. J. Burton (Wellington) said that the suggested amendment to taxation would result in many difficulties cropping up. Mr. L. R. Partridge (Wellington) urged that manufacturers should concentrate upon preference within the Empire. Tlie opinion of Dunedin dfelegates, said Mr. G. W. Reid, was against the motion because of its impracticability. It would arouse a howl of protest and might ultimately do more harm than good. In reply Mr. Finn said lie realised that there were difficulties in the way, but thev should consider the psychological effect upon tlie importer of foreign goods. Every time the Customs tariff was raised so was the cost of liv'ing. Protection should be kept down to bedrock. The motion was lost on the voices.