AMUSEMENT TAX

Evening Post, Volume XCV, Issue 51, 28 February 1918, Page 3

AMUSEMENT TAX

AGRICULTURAL AND PASTORAL SOCIETIES DEPUTATION TO MINISTER OF FINANCE. A deputation o£ the Council of Agriculture waited on Sir Joseph Ward (Minister of Finance) yesterday to request that agricultural and pastoral societies be exempted from the amusement tax provision of the Finance Act. Mr. George Hunter, M.P., introduced the deputation. Mr. F. W. Williams (Hawkes Bay) said the members of the deputation knew that the requirements in the way of taxation were very heavy. At the same time they felt that agricultural and pastoral societies were not like moneymaking institutions. They were instructive, and for that reason should receive somo consideration. They did not receive any direct consideration from the Government in a financial way. The amount of. tax likely to be collected under the Finance Act from this source, as far as they could-estimate, would be from £1500 to £2000—that was from all the agricultural and pastoral societies throughout the country. Some of these societies found it very difficult to pay their way. The Council of Agriculture had passed a resolution recommending the exemption, of agricultural and pastoral societies from the operation of the tax, but agreeing that side-shows connected with the shows should be subject to the tax. He did not think there was a society thut made a profit out of its show. Mr. Sutherland (Manawatu) said it was admitted that the agricultural interests were the backbone of the country. It might be said that the tax could be passed on to the public, but if they did that they would'antagonise the public) and that would affect their interests and revenue. He understood that in proposing the tax the Minister expected to receive a big revenue, but he (Mr. Sutherland) did not think the amount which would be received from the societies would come to £1500. Mr. Lockie (Canterbury) said that a number of the Canterbury shows would not be able to carry on if the imposition of the tax were continued. Mr. J. M. Johnston (Manawatu) supported the relief asked for being granted to the agricultural and pastoral societies. Sir Joseph Ward, in reply, said he recognised the great value of agricultural and pastoral societies to the country. He did not think there could be any difference of opinion upon that. He pointed out that life could not make any alteration at present, even if he wanted to. That could only be' done by legislation. Mr. Williams: We recognise that. : Sir Joseph Ward said he would,. have an opportunity of knowing how this tax was operating after the end of the financial year. He did not agree with the statement that if the ■ request of the .deputation were refused it would be disastrous to the Agricultural . and Pastoral Societies. He pointed out that if an exemption were granted in one case there would be strong pressure to have other exemptions made. If the Government could avoid what might .be called pin-pricking in connection with their taxation, and get the millions that they wanted, that would be far more satisfactory from his point of view and from everybody's point of view. He used the word pin-prick-ing in the sense of '• referring- to small" amounts collected." HyWiuld ■ give the deputation an example of the eort of thing he had to go through. A gentleman in Canterbury, who called himself asensible ihan, and who was a large land-, owner, suggested that the land-tax should be repealed. When you found'men making suggestions. of that kind during the war—and being sometimes rude and offensive in making such requests—requests made to a Minister carrying oufc a very difficult duty—'one could "not think very much of persons making such suggestions at a time of financial stress like the present. Anyone making such a suggestion as to repeal the land-tax, at the present time ought to be removed to a place of solitary confinement, and be kept there. That was evidence of .what the-Minister of Finance had to listen to in the way of suggestions for- alterations of the taxation. The war \vould impose very heavy additional burdens in the way of taxation. On the whole, the people of tl:e Dominion were responding, he might say, magnificently to the additional burdens which were being forced on them by fhe war. There were some people who complained if they had to pay additional tax, whilst others had to borrow money to pay their tax, and they were not complaining, because they recognised the necessary additional burdens imposed by the war. Some people complained of the repeal of the profits tax, and urged that it should bo ■continued. He told the House that they could not rely on getting more than a million from that tax. Canada had repealed the tax because it Could not get the revenue. . We repealed it because we could not get our revenue under it. We could not set, he supiKised, within, two and a half "to three millions of what we were getting under the present system. Yet there were people going about the country making all sorts of exaggerated statements as to the revenue that could be got from the tax. In many cases farmers had been exporting classes of stock which they would not do under ordinary circumstances, and some people seemed to forget that a fanner required to replace his stock. A few days ago a department over which he had control had had to pay £400G for material for which they would have only had to pay £500 immediately betore the war. There were some articles which had gone up in cost 400 per cent.—articles imported into this country. The Government had to look ahead and consider what would be the position after the war. Until they knew what would be required to adjust the .position after the war they had to act with caution. They would require very large sums indeed. Heavy remissions could not be made without realising that Parliament would have 10 be asked to impose taxation' in place of such remissions. Financially we were fortunately strong—stronger, he believed, than any other portion of the British possessions. He thought it was onry right to say that. No one could say what was going to happen after the end of this year. They had to look ahead and provide for any financial stress that might require to be met. Very large provision would have to be made so as to enable us to get the 'position readjusted after theVwar. Everyone was feeling the increased burden of taxation hut. n was splendid the way the people had responded who had to pay the taxation. In regard to' the request of the deputation, he would not know the position until after the endiof the financial year. They could not make any alteration ■ in the law until Parliament met, and Parliament would meet for the short session to deal with special important business; but he would let them know the result of the tax at the end of the financial year 1, and if the amount involved was small he hoped to be able to favourably consider their request; but he could not give a promise ■until he knew what granting the request would mean. In reply to a further question, Sir Joseph Ward said he would bo glad to look into the question of the method of collecting the tax, and sfee that a uniform method was adopted.