“NOT REALLY FAIR”

Dominion, Volume 28, Issue 98, 19 January 1935, Page 8

“NOT REALLY FAIR”

Sales Tax on Tailoring “Apparently their real objection is to paying sales tax on labour,” said a Wellington master tailor yesterday, when asked to comment on the statement of the president of the Auckland Master Tailors’ Association, Mr. H. Preston, that the effect of tlie tax on merchant, tailors, who were registered as manufacturing retailers, appeared to be unfair when compared with that paid by those registered as retailers. More tax was paid on goods than on labour, said the tailor, but at the same time he did not see why they should have to pay sales tax on labour. A tailor bought material, paid sales tax on it, made it into a suit, and then had to pay sales tax on the wages. Apparently tailors were placed in the same class as clothing manufacturers, who were working under different conditions altogether. It certainly did not seem fair. Asked if he knew anything of tlie statement from Dunedin that many tailors throughout the Dominion were declining to pay sales tax until the authorities took action anil brought what would be regarded as a test ease, tlie tailor replied that at present he had heard nothing, although notification of developments would probably be forthcoming. At present tlie Auckland association was waiting for information from Dunedin, and if Auckland fell into line it was likely that Wellington would do the same. The Dunedin people were taking the right steps, and it seemed tlie best way of bringing the matter to a head. If they refused to pay the tax the Government would be forced to take notice. The president of tlie Wellington Master Tailors’ Association, Mr. D. Milligan, said he would prefer not to make any comment at present.