BUSINESS MEN VOICE DISMAY

Dominion, Volume 32, Issue 262, 3 August 1939, Page 11

BUSINESS MEN VOICE DISMAY

View That Government Has Gone Too Far HOSTILITY TO HIGHER PETROL TAX Dominion Special Service. DUNEDIN, August 2. Almost without exception, various phases of the increase in the incidence of taxation, as revealed in the Budget, have been received with dismay by business and commercial circles in the city. . The opinion is expressed that the Government has gone just a little too far this time, and that its actions will kill the goose that laid the golden egg. It is stated, too, that various increases in rates, expected to bring in an additional £2,500,000 in . taxation, give some indication of the dire straits in which the Government finds itself financially. The imposition of another 4d. a gallon in petrol charges has been received with open hostility, and all sections of the transport industry view the matter verv seriously. While some managers were reticent on the subject of the increase in company taxation, all were emphatic that it would have a crippling effect on industry. They regarded the land tax as most unjust, and also as unfair in operation. This tax, it was stated, was not one that could be passed on. Little is yet known as to the effects to the consumer of the new tax on beer. No decisions have been made by the Licensed Victuallers’ Association or by any firm connected with the trade, as far as is known. The probability is, however, that the increase will be passed on. The only optimistic note was struck bv officials of a life insurance firm. Though exemption in respect of death duties has been eliminated, removing one incentive to insure, they point out that tax exemption in respect of the 15 per cent, of income, which may be invested in life insurance, remains untouched by the lowering of the general exemption. A large number of workers on the lower wage scale will be brought within the range of income tax, and to these people the, present rates of insurance benefit will be increased by the amount of taxation from which they will be exempt. Though they expect that money will be much “tighter” in future than it has been, these officials were of opinion that, after a few months, an increase, rather than a decrease, of business could be expected. AUCKLAND STOCK EXCHANGE How Is Rest Of Loan Money To Be Raised? I By Telegraph—-Press Association. AUCKLAND, August 2. There was practically no reaction on the Auckland Stock Exchange today to the Budget. Apparently something drastic was expected by the general body of investors, and prices of New Zealand investments have 'been kept at comparatively low levels as a precautionary measure. It is expected that business for the time being, however, is likely to be somewhat quieter. After a meeting the committee of the Auckland Stock Exchange issued the following statement: — “It is a .matter for regret that the Government has not sufficiently appreciated the financial position of the country to initiate some immediate curtailment of public expenditure, continuation of which operates against the encouragement of private industry, the main source from which taxes are forthcoming. No mention is made as to how the required balance of loan moneys is to be raised. An amount of the magnitude of that required must hang as a cloud over the investment market till the position is clarified.” MANUFACTURERS MAKE NO COMMENT Mr. H. B. Duckworth, Christchurch, president of Ute New Zealand Manufacturers’ Federation, was interviewed last night. He said the Budget had been discussed at a meeting of the council of the federation that day. No statement, would be made on the Budget; there was nothing in it of particular interest to manufacturers.