CUSTOMS AMENDMENT

Evening Star, Issue 21825, 14 September 1934, Page 6

CUSTOMS AMENDMENT

MODIFICATION OF ORIGINAL BILL SPECIAL SALES TAX PROVISION RADIO SET CHANGES SOME UNITED KINGDOM CIiINAWAt!E EXEMPTIONS. [Prom Our Pahtjamentakv Kecokter.] . WELLINGTON, September Li. The imposition of :i special sales tax on goods liable to excise duty and sold at in bond ” prices is provided under an amendment to tlie Customs Act Amendment Dill, introduced into the House ot Representatives. According to this provision the sales tax, in addition to the ordinary import payable, nil! have to be paid at the time ol entry for home consumption on any goods manulactured in New Zealand ot a class liable to excise duty and also to sales tax, which are sold otherwise than to if licensed wholesaler lor re-; sale by him at a price that does not include excise duty. The additional sales tax will be paid by the person entering the goods, and the sale value on which the tax is assessed is to bo deemed to be the amount of the excise duty paid. Under another amendment, special provisions are made lor the computation. of sales tax in respect of imported cigars, snuff, cut tobacco, other tobacco, and spirits. The sale value is to be the sum of the equivalent in New; Zealand currency of the value of those goods for Customs duty, and the amount of the duty, together with 23 per cent, of the former amount. Power is given the Minister of Customs to include other items by ‘ Gazette ’ notice, or by similar means to exclude any of those mentioned.

Explaining the provisions to the House, Mr Coates read the following departmental memorandum :—“ The principle underlying the sales tax legislation is that tne tax is payable on the duty-paid selling prices of the goods. When, however, goods, especially high-duty' goods (lor example, spirits and tobacco), are sold in bond by wholesalers, the sales tax is paid by them on the in-bond price. The sales tax on the duty is, in effect, paid in the case of imported goods by the person clearing them from bond. No similar provision, however, is made in the case of goods liable to excise duty and sold at iiirbund- prices. In such cases there is no provision for payment of the sales tax on the duty. This is provided for in a new clause, and this provides for payment of the tax on excise duty only, it is found that when spirits anti tobacco are sold' at duty-paid pritesij, no profit is made on the" 1 duty, finder the Jaw, it is provided that, in the ■ case of imported goods. 25 per cent, is to be added to the duty to determine the sale value. That was, of course, intended to include a piofit on the duty, in view of the above, it is now proposed to abolish this addition so far as imported goods are concerned,’’

An increase in the duty on foreign radio sets mounted in cabinets, to take effect as from to-day (Friday). was decided upon by tlfe House. The rates fixed are : '

Built up, but not mounted in cabinets, 35 per cert. Mounted in cabinets. 45'per cent. There is no alteration in the British preferential rate.

Discussing the matter in the House, tlie Minister of Customs, .Mr Coates, read the following statement:—“lt will be remembered that under the amending resolutions introduced on August 23 it was proposed that the parts of radio sets ami sets built up (but not in cabinets) were to be admitted free of duty if under British preferential tariff, and charged 25 per cent, if of foreign make. These were the rates in force under the old tariff. With respect to radio sets in cabinets, it was proposed that, under the British preferential tariff, the rate be 10 per cent, up to the end of May next, and thereafter they should be free of duty. The reason for the postponement was to enable the Government to take up with Australia (and, if necessary, Canada) the question of making a satisfactory’ arrangement with those countries. It was proposed that the rate for foreign sets mounted in cabinets should be 35 per cent, ad valorem. it has since been pointed out that, owing to the intense competition from imported sets taking place, due to various causes, the local industry, which lias assumed large proportions, will not be able to hold a sufficient portion ot the trade to carry on effectively. It has therefore been decided, to fix the rate on foreign sets, when made up but not mounted iu cabinets, at 35 per cent,, and when mounted at 45 per. cent.

The Government’s intention to afford tariff exemption to certain classes of United Kingdom china ware and earthenware was indicated by’ the Minister. The affected items are:— Breakfast, dinner, and tea sets, and cups, saucers, plates, dishes, and similar articles for table use. Up to September 30, the existing 20 per cent. British preferential duty will remain, but thereafter the goods will be admitted duty’ free. COMMITTEE STAGE DEBATE CONCENTRATION OH WHEAT DUTIES [Per Uaracii Press Association.! WELLINGTON', September 13. When the committee stage of the Customs Acts Amendment Bill was commenced, .the Leader of the Opposition (Mr M. <l. Savage) referred to the wheat duties, lie said he thought the constitution of the Wheat Board should be altered, and the grower given greater representation. He would like to see the Minister take control of the administration, or he should see that the consumers’ interests were watched.

Air H. S. S. Kyle (Riccarton) said had it not been for the Wheat Board the industry would have been in a chaotic condition, ft had enabled growers to secure a price they would not have obtained otherwise.

Mr R. AUKeen (Wellington South) said that Hour mills wore over-capital-ised. The price of bread was kept too high. Mr C. A. Wilkinson (Egmont) attacked the sliding scale of wheat and flour duties, and said there were too many Hour mills. The unnecessary ones should be closed.

Air H. T. Armstrong (Christchurch East) supported the sliding scale of wheat duties.

Air W. J. Poison (Stratford) urged the exemption of the duty on steel pipes. He said there was only one firm in New Zealand making pip;cs. The duty of 20 per cent, on British pipes should be abolished, and British firms given a chance of tendering for local body eontracts. He considered that'The protection should also be reduced on British confectionery. Mr W. Nash. (Hutt) said that the sliding scale was wrong in its incidence, and some steps should bo taken to see that bread was sold at a minimum price, but they must see that the grower received a reasonable price for his work. Air H. G. Dickie (Patea) contended that there was too large a difference between the price the grower received for wheat and the price of bread. Mr AY. A. Veitch (Wanganui) supported the .abolition of the sliding scale. Ho said In's constituents were - paying more for bread than the bread was worth.

Mr. J. A. Macpherson (Oamani) defended the sliding scale. He said that bran and pollard were more important than the whole of the flour industry. The dairy and pig industries were dependent on bran and pollard, and that showed the importance of the wheat industry to Few Zealand.

Mr D, G. Sullivan (Avon) said he was not particular in what way tho grower was protected so long as the industry was safeguarded. Mr A. Stuart (Rangtikei) said there was no more important industry than wheat growing. He thought that tho wheat duty was quite a reasonable one. Mr Clyde Carr (Thnaru) said that every country protected its wheat industry. • A Hat rate duty would not give stability and protect the fanner. Mr I’. C. Webb (Duller) regretted that a duty had not been placed on crude oil and on oil burning machinery, and that nothing had been done to assist the coal-mining industry.' 'He considered, too, that a tax should be placed on imported coal. ■' Mr J. Connolly (Mid-Canterbury) defended the sliding scale of wheat duties and said it was quite unnecessary to import Australian or Canadian wheat and (lour if Xew Zealand wheat wore properly matured. Mr R. Semple (Wellington Hast) said he hoped the duty would be taken oil' white lead. This would benefit the community, and not the combine that at present controlled the paint industry. Much work would be put in hand if the price of paint was reduced. Mr F. F. Healy (Warnin') urged that a reduction bo made in the duty on steel pipes. Mr W. F. Barnard (Napier) sought an • assurance from the- Minister that Xcw Zealand’s wine industry would not be adversely affected by tho alterations in- the duties. Mr R. W. Hawke (Kaiapoi) supported the sliding scale of wheat ami (lour duties, and contended that bakers wore making good profits at the present prices unless they had heavy bad debts to offset their profits. Mr J. A. Hargest (Invercargill) referred to (ho motor ear industry. He said it had no competitor in Now Zealand. An increasing number of foreign ears were entering New Zealand, and something should bo done to assist British ear manufacturers.. The short title was passed and progress reported. The House rose at 11.30 p.m.