FURNITURE COSTS

Evening Post, Volume CXXX, Issue 27, 31 July 1940, Page 9

FURNITURE COSTS

SALES TAX POSITION

"It is not the custom of the retail furnishers in Wellington who are members of the Wellington Furniture and Furnishing Trade Industrial Union of employers to add sales tax to the price of articles quoted to purchasers. On the contrary, it is usual for them to embody the sales tax in the price," said Mr. W. J. Mountjoy, secretary of the union, today, referring to a letter on the position appearing in the "Evening Post" on July 26.

In the letter, "Constant Reader" said that in June he ordered some furniture for delivery in August. The price was £29, plus sales tax. He had a letter showing the price, which also mentioned the sales tax, 5 per cent, in brackets. He had paid a deposit of £13 on the furniture. The question was: What rate of sales tax did he Have to pay, 5 per cent, or 10 per cent.?

If "Constant Reader" purchased the goods from a wholesaler, said Mr. Mountjoy, then the wholesaler would be liable for the payment of the extra 5 per cent, accrued as from June 27, 1940. The retail manufacturer was in the position of being liable for 5 per cent, to the Customs Department for any furniture manufactured prior to June 27, 1940, and the increase of sales tax to 10 per cent, as from June 27 last would also be payable. Whether the retail manufacturer passed this on to the customer or not was really a matter of his own concern.