TAX ON LUXURIES

Dominion, Volume 24, Issue 200, 21 May 1931, Page 3

TAX ON LUXURIES

Balancing the Budget

FARMERS’ OPINIONS

Public Borrowing

Dominion Special Service. Palmerston North, May 20. “That if the Government is forced to raise more revenue it does so by means of an import tax on all luxuries, a higher excise duty on beer, and a higher tax on amusements,” was a remit considered at tiie annual interprovincial conference of the Farmers’ Union to-day. Mr. 11. Bennett (Tinui) said that at the next session of Parliament increased taxation would be considered to make up the deficit in the country’s Budget. No section of the community was in a position to bear this taxation. The duty on drink in New Zealand was lower than in any other country of the world. Mr. Bennett quoted figures in support of his contention showing that if the duty on beer in New Zealand was increased to the level of Australia the sum of £740,000 would be produced. An amount of £230,000 would be raised if the duty on wines and spirits was raised to an equal level.

Mr. Hodd (Pahiatua) said that those who were running amusements were in just as bad a position as any other business man.

The remit was carried on being put to the vote.

The conference adopted the following resolution: —

“That the Government be urged to reduce the rate of interest being offered by it for money borrowed in New Zealand.” Mr. O. P. Lynch (Manawatu) said that the farmers’ greatest difficulty at the present time was the cost of money. While the Government was giving s>} per cent, on gilt-edged securities the farmer had no chance of borrowing in the private market.

“That this meeting is of the opinion that the principle of local bodies borrowing money without the sanction of ratepayers is undemocratic and may lead to hardship,” was a remit from the Marton executive that was lost. Members considered that local bodies could not borrow excessively on account of the restrictions of the Local Loans Board. Local bodies only raised money without polls for works of urgency.