TARIFF BURDEN

Evening Post, Volume CXV, Issue 132, 7 June 1933, Page 10

TARIFF BURDEN

FIGURES ANALYSED

The contention that the burden of the Customs tariff was lighter than was generally believed -was made by Mr. A. E. | Mander, secretary of the New Zealand | Manufacturers'- Association, in giving cvi-1 dence today before the Tariff Commission. "There is a widespread notion that the burden of the Customs tariff_ upon the community is very much heavier than it is in fact,' said Mr. Mander. "May I show what it really amounts to? In 1932 the total tariff revenue was £4,200,000. But more than half of this 5um—£2,172,000 —was collected on alcoholic beverages, tobacco, motor-cars,-«tc. Deducting these items, we are left with only £2,028,000 paid on all the rest of our imports, British and foreign combined. This works' out at £1 7s per head of the population for the year. Even this sum must not, of course, be treated as the cost of the protective tariff. Of the £2,028,000 duty paid in 1932 (apart from the luxury items mentioned), probably at least one-third was collected in respect of 'purely revenue' items. The 'dual purpose' items (revenue and protection combined) may be estimated at roughly £ 1,400,000—0r, say, ISs 8d per head of the population. "This was protection, very moderate protection, but it was also taxation; and if the State had not obtained revenue in this way, then some other form of taxation, e.g., additional sales tax, would hare had to be imposed. The protective tariff cannot be regarded as a charge upon the purse of the community. It is merely a form of taxation which, while providing the Government with necessary revenue, also at the same time has a beneficial effect on New Zealand industries. The only 'burden' upon the community is the necessity of providing revenue for the State. The fact that the tariff serves a protective purpose also—this does not increase the burden. On the contrary, by providing- employment for tens of thouj sands of workers, and wages tax, and income tax obtained from manufacturing companies, the burden of taxation upon the rest of the community is considerably lightened." ',