"LITTLE TOO FAR"

Evening Post, Volume CXXVIII, Issue 29, 3 August 1939, Page 7

"LITTLE TOO FAR"

HIGHER TAXATION

TRANSPORT INDUSTRY HARD HIT (Special to the "Evening Post.") DUNEDIN, This Day. Without exception the 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 a little too far this time, and its actions will kill the goose that laid the golden egg. It is stated, too, that the various increases in rates, anticipated 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 very seriously. Commenting on this, Mr. J. Phillips, a member of the Industrial Transport Association of Britain and one thoroughly versed in all phases of the various problems confronting the trade today, said that the transport industry in New Zealand was the highest taxed of all industries. The rate in New Zealand was higher than in any other country in the world. The comment of the Miriister of Customs that no hardship would be involved in the increase of the petrol prices was all nonsense, said Mr. Phillips. The transport industry had been struggling under a heavy burden of taxation for many years. The fight, had been to try to have some of this taxation, such as heavy traffic fees, reduced. It was not generally known that out of every £1 collected in cartage the Government took 5s in taxation. In other words, the taxation ratio was 25 per cent, and this was regardless of income tax payable on profits, if any. The whole tendency so far' as could be seen was to force cartage rates up again in every section of business, which is turn must be passed on, and there could be no doubt as to the ultimate results. The pubhc must pay so far as light delivery was concerned. The tendency would be for business houses to do away with tree delivery services. This would then mean thai transport operators doing this olass of work would be detrimentally affected and it would bring about unemployment.