TAXATION EXEMPTION

Evening Star, Issue 20862, 4 August 1931, Page 7

TAXATION EXEMPTION

PUBLIC BODIES WITH TRADING DEPARTMENTS DISSATISFACTION EXPRESSED £Pee United Press Association.] WELLINGTON. August 3Serious objection was taken by tli<! Associated Chambers of Commerce to the fact that the Budget contains no provision for tho taxation public bodies trading in competition with private enterprise. Asked for an expression of the views of the chambers on the Budget, Mr A. 0. He any, organising secretary, said his_ body had yet to give full consideration to tl)« proposals, but tho immediate objection which it had to make was the omission m the Budget of any provision for the taxation of trading public bodies in order to place them on a footing similar to those trading concerns with, wlu’ch they were in unfair competition at the present time. “ This has been a burning question with the business community foryears,” Mr Heauy said. “It is absoluteh r unfair and unjust that one section of the community should be served with a commodity such as electric light or gas at the cheaper rate rendered possible by' exemption from taxation than another section merely by reason of the service being controlled either ( by a power board or municipality, and it. has long been the earnest endeavour of the Associated Chambers of New Zealand to have these concerns brought within the scope of the Act. Remit after remit has been passed by the Associated Chambers at their conferences on tho lines of the representations made to the Government. “ When the Associated Chambers arranged a deputation on July2 last to the Prime Minister, the Minister of Industries and Commerce, and the At-torney-General and the PostmasterGeneral, tho Prime Minister said the Government had under consideration the possibility of getting increased revenue by the taxation of such, enterprises. In view of .this most sympathetic expression of opinion, it comes as a painful surprise to tho chambers to note that the matter has not been dealt with in the Budget. Wo estimated that the tax collectable under; this heading was £IO,OOO. This indicates the revenue that could be collected by the Government from trading public bodies as fair taxation, besides - which it'would remedy the unjust position that exists to-day.”