PRIMAGE ALTERNATIVE

Evening Star, Issue 20255, 16 August 1929, Page 8

PRIMAGE ALTERNATIVE

MR i‘GOiSS SUGGESTS SURTAX [From Ocb Farliaiiektari Reporter.] WELLINGTON, August 16. Some suggestions for increasing tlie revenue without adding appreciably to the burden of the general community were offered the Finance Minister in the House this morning by Mr M'Combs, who protested against the imposition of the additional 1 per cent, primage duty. He reminded the House that Sir Joseph Ward imposed the 1 per cent, primage in 1915, stating then that it was for only six: months, but it had remained in operation for fourteen years. Mr M'Combs suggested that tho Premier might impose a super tax on incomes of over £I,OOO. That, of course, would he an increment tax, but if the Prime Minister was determined to get revenue from the Customs, a surtax could he imposed on dutiable goods which had been placed on the duty list for sufficient reasons. Luxury goods could well stand this surtax, and the Prime Minister would be able to give New Zealand a free breakfast table. “I propose,” said, Mr M'Comhs, “that the primage duty should be repealed absolutely, and the additional revenue required looked for somewhere else.” He said that under his scheme duty free goods would be absolutely free; 10 per cent, goods would pay 1 per cent, surtax; 20 per cent, goods pay 2 per cent., which would still be less than the Prime Minister’s proposals; and 30 per cent, goods, in which were included such items as woollen goods and boots for the protection of local industries, would pay only 3 per cent, additional. Buttons, trimmings, and linings used by manufacturers could be allowed in free, giving them an additional advantage. Then 50 per cent, goods could pay 6 per cent, additional. If this were done an additional £50,000 would he obtained. Mr M‘Combs said the manufacturers, who got machinery 'in free, would greatly benefit under this scheme, and a free breakfast table would also be possible. The Excise duty could also be increased by 10 per cent., so that, instead of £600.000, _ beer duties would produce £660,000 without the consumer having it passed on, although it did not matter to Mr M'Comhs whether it was passed on. (Laughter.)