SALES TAX BILL

Evening Star, Issue 21081, 19 April 1932, Page 3

SALES TAX BILL

♦- WHO TAKES CHARGE ? NOT MINISTER OF FINANCE [From Our Parluusmtart Riportsr.] WELLINGTON, April 18. When the Sales Tax Bill is introduced this week in the House of Representatives, it will be found that the Minister in charge will not bo the Minister of Finance (Mr Downie S.tewart), but his Reform colleague in the Coalition (Mr Coates, Minister of Public Works). No doubt this singular departure from precedent will attract critical attention from the Opposition, which has already had something to say about the Prime Minister taking control of the National Expenditure Adjustment Bill. That measure, however, is so sweeping in character that it is appropriate that the Head of the Government should take the responsibility for its handling in Parliament. However, the Minister of Finance has expressed opinions which are in opposition to some of the principles of this drastic measure, and he has put himself on record with even more emphasis regarding a sales tax. In the course of his 1927 Financial Statement, Mr Downie Stewart had the following to say about the sales tax:—

“ The suggestion was' made that a sales tax, or turnover tax, should bo considered in place of some of our present taxation, but I am satisfied_ that such a tax would not bo as equitable as the present tax on income. In any case, in my opinion, such a tax, being both on luxuries and necessities, must hit the poor (who have a smaller margin beyond the. necessary expenditure) more heavily than the rich.” One finds in this quotation the reason for _ the unusual departure from Ministerial practice. It is a reminder that the Coalition is endeavouring to find solutions for the country’s problems, and that differing schools of thought are co-operating. Mr Stewart’s position in relation to some of the financial measures approved by the Coalition is not taken in parliamentary circles to mean that lie has lost any of his prestige in the Cabinet. There is an important Finance Bill coming forward under his care, and if any critics find fault with the singular position which has been described they will be referred to the good precedent in connection with the tariff measures of the British National Government, where certain Freetrade Ministers have been outspoken in their opposition, but have not sacrificed their place in the Administration.