LABOUR PROMISES

Greymouth Evening Star, 10 August 1946, Page 5

LABOUR PROMISES

WOOING THE AUSTRALIAN ELECTOR TAXATION_REDUCTIONS (From 0. 11. Mentiplay, Special Press Association Correspondent.) SYDNEY, Aug. 9. The news that, if re-elected, the Labour Government intends to reduce indirect taxation by £18,000,000 a year offers some solace to citizens, who regard the recent concessions of £17,509,000 in direct taxation as niggardly. The proposals have not yet taken definite form, and there is still an election to be faced before the promised prize is won. The feeling that such reductions are not before their time is supported by figures which show that last year in indirect taxes included in prices of goods and services Australians paid the Government £144,000,000. This, of course, was after meeting direct taxes amounting to £215,000,000. This terrific loading on the entire population is actually borne by the Commonwealth’s 3,500,000 wage earners, of whom 80 per cent, earn £8 a week or less. Last week Mr. P. C. Spender urged that the Government remove the sales tax and reduce the company tax. Because of the incidence of indirect taxation which falls on household goods, food, manufactured items, petrol, tobacco, beer and spirits, postal services, and other everyday things, it is plain that a remission here would confer greater benefits on the working man and his family than a reduction of income tax. In fact, indirect taxes represent £29/10/- of £49 paid by each member of the community out of an average wage of £247. The “little man” sees the income tax as the biggest hurdle. Actually each Australian pays £6/8/- a year for excise, £2/15/- for customs, £4 for sales tax, pnd £1 for entertainment tax. In excise duties 73 per cent, of the value of every gallon of beei' invoiced by the breweries went to the Government, with the result that the taxpayer buys one schooner for the price of two. But for excise and customs, a lOd packet of cigarettes would contain 29 instead of 10 cigarettes. Four of every nine matches used are struck on behalf of the Government. Private motorists lose petrol for 39 miles in every 100 as a result of duties included in the price of fuel. It is stated that Australia is not the heavy protectionist people may imagine. Last year half the imports for civilian use entered free, but on items that were taxed the duties were solid.