THE WAR-TAX

Evening Post, Volume LXXXIX, Issue 56, 8 March 1915, Page 7

THE WAR-TAX

IMPORTS AND EXPORTS WHAT 1 PKR CENT. WOULD MEAN* The war will have to be paid for. Tlmfc goes without saying. The New Zealand Government has undertaken a very large war expenditure, considering the siae of the population, and this apart from the voluntary gifts in money and kind for the National War Fund. That a war tax must be imposed is generally conceded, but as to what form it shall take there is a great difference of opinion. All sorts of taxes have been suggested in print and out of it— total' isators, entertainments, some exports and additional on some imports, liquors, and tobacco, and what. Lloyd Georgedescribed as the "elusive teetotaller" has been mentioned as a fit subject for taxation throught the teapot, all tea that is; British-grown being admitted duty free, and foreign-grown teas 2d per lb, while the British consumer pays his 8d per lb. The opinion of Mr. Harold Beauchamp, Chairman of the Bank of New Zealand, was asked by The Post ns to what in his view would be the best and simplest Way to meet the cost of war. "So far," he said, "I have not seen any practicable proposal made in print as to how this large expenditure should be met. -Persona-fly, I think a tax of 1 ' per cent, on the values of all exports and imports would meet the case and inflict no hardship upon anybody. All alike would bear the burden. It would not be a class tax, and I do not think it would be seriously felt. It would yield, 1 estimate, £500,000 per. annum, based upon the total value of exports and imports of the, ' year ended December, 1914. One of the merits of such a tax appears to me to be the cheapness of its collection. In 4 the Customs there is .already the machinery for the purpose. Everyone would pay the tax, but only in proportion to their means. What is 1 per cent, on, say, the £50 or £100 of imported goods used by each consumer? And what is 1 per cent, upon the £500 or £1000, which the farmer has received for his wool, with wool at its present high prices 1 The same applies to the^ excellent returns received for meat and dairy produce^ and other exports. In many instances. I have no doubt that, a tax on imports of 1 per cent, would be borne wholly and solely by the importer, as it would bt> rather too small to pass on to the com sumer. No one would feel such a small tax, one which would be so widespread and comprehensive., while the Government would be relieved of a lot of Anxiety and its revenue would come in in the simplest and cheapest way possible. In a few years the war debt would be extinguished. In 14 years, based upon present figures, only, some £6,000,000 or £7,000.000 could be col« lected and nobody feel any the worse. Tho free breakfast table would not be violated, and costly and complicated systems of collection would be entirely avoided. "It might be argued." "Mr. Beau* champ went on, "that the imposition of a war export tax would press unduly on the producer who would be called , upon to pay both import and export duties ; would, in short, carry the double burden. But the answer to that is that as a. 'class the producer has greatly benefited, is benefiting, and is likely to benefit still further from the war bringing about bucli magnificent prices for all descriptions of produce. Tho non-producing class are not so directly benefiting*; on the contraVy they have to pay more for New Zealand produce consumed in the country in consequence of its enhanced value outside "Another point t An extra. £ per cent, on imports and exports would furnish £125.000 per annum, which could, > if necessary, be used within the discretion of the Government for relief of such nations as Belgium and Servia, who have suffered by the war to such an enormous extent— also, for the relief of the suffering of the United Kingdom and our own local necessities. "It is recognised, _of course, that no* thing can be done in the direction indicated until Parliament meets, but one cannot help feeling that the members as a whole will support war tax proposals that will not press hardly upon one or more classes, out that will bo distributed equally over all the people. The time is pressing, and t venture to think that Parliament's first duty should be the imposition of an equitable and comprehensive war tax, to be collected simply and with tho least possible expense."