BUILDING INDUSTRY

Evening Post, Volume CXV, Issue 63, 16 March 1933, Page 12

BUILDING INDUSTRY

.THE MATERIALS AFFECTED

AN EXPLANATION

In response' to an inquiry addressed by the principals of one of the larger construction companies in Wellington as to how sales tax is to apply in the building industry, the Comptroller of Customs (Dr. G. Craig) has set out the position in some detail.'

"It is not intended that sales tax should be charged upon the labour involved in the excavation work for the foundations of a building or, subject to the succeeding paragraph of . this letter, on the labour involved in the erection and completion of the building," stated the Comptroller. "In the case of joinery and similar article's of wood, steel, etc., which are frequently in the ordinary course, of business made by independent manufacturers and sold to builders, it is intended that such articles should bo charged with sales tax when they are made by builders in their own factories and also if and when they are embodied in the building in the course of their construction. . !

"The position respecting 'material . . . when not exempt from sales tax, is that the tax. is payable (inter alia) on:—

(a) limber, cement, plaster materials, steel window sashes, and roller shutters—tax payable according to the provisions of the sales tax legislation.

(b) Eeinforcing steel—tax payable according to the provisions of the sales tax legislation. The cost of labour expended on • the job in bending and placing such steel in position would not be liable to tax.

(c) Structural, steel and .general ironwork,- including joists, roof straps, rivets, bolts, fabricated stanchions, beams, and connection*—tax payable according to the provisions of the sales tax legislation. Tax would not be payable on the cost of labour involved in. such work as riveting and erecting such goods on the job.

(d) Joinery—tax is payable according to the sales tax legislation. The 'cost of fixing into the building finished articles such, as wooden or steel window sashes would not be. iiable to sales tax.

(c) .Concrete boxing for Teinforced concrete—tax would be payable on the materials used in making such boxing according, to the sales tax legislation. The cost of making such boxing, whether done off or on the job, would not.be liable to sales tax. .

(f) Fibrous plaster work —sales tax would be payable on the materials used in such work according to the sales tax legislation, but not on the cost of labour in fixing sheets, cornices, and mouldings on the job."

In conclusion, the Comptroller stated that it might later be necessary to review some of the above decisions, and that, if so, as much notice as possible would be given' of the alterations.