THE NEW PRIMAGE TAX

Dominion, Volume 23, Issue 30, 30 October 1929, Page 10

THE NEW PRIMAGE TAX

The figures given by the Government to justify its proposal, to double the primage duty do not appear to answer the case against this fresh imposition on the taxpayer. Rather they would seem to support the contention that the normal increase in Customs revenue should make the collection of the extra primage unnecessary. Thus Customs yielded, on Mr. Taverner’s statement, a sum of £4,391,345 in the first half of the current financial year, against £3,771,554 in the corresponding period last year, an increase of £619,791. Actually the Budget requires an increase from Customs of £450,000 so that increment is already in hand with £170,000 to spare. ■The Comptroller of Customs, however, considers that this increase will not be maintained during the second or current half-year, and sets down the total increase over the Budget estimate at only £50,000. That is, Mr. Craig is of opinion that Customs revenue in the current half-year will actually be less by £120,000 than the yield* of the second six months of last financial year. This notwithstanding that in the first period the difference was £620,000 in this year s favour. ; Mr. Craig is an expert, and his estimate must be treated with respect, but surely his forecast for the ciirrent half-year is unduly conservative. If the result is as he expects, and extra taxation, is necessary to balance the Budget, then the Leader of the Opposition is on firm ground in. opposing its derivation from extra primage, which bears hardly on the mass of the people and is ultimately collected in great part from the pockets of the wage-earning classes. Better, as Mr. Coates suggests, “to raise the wind”, by extra taxes on imported luxuries. Those who can afford luxuries will be best able to pay the taxes required to balance the Budget.