SALES TAX IMPOST

Greymouth Evening Star, 20 February 1947, Page 3

SALES TAX IMPOST

EFFECT ON THE PUBLIC

(P.A.) WELLINGTON, Feb. 19. Although some delegates at the annual conference of the New Zealand Manufacturers’ Federation today favoured the abolition of the remaining sales tax items, they deferred to the majority view that the whole matter should be reviewed by a competent committee.

When the remit on sales tax came up for discussion the president (Mr. W. J. Truscott) said that sales tax was reasonable and had the advantage of spreading taxation over the consuming public. That was a fair method.

Mi'. H. C. Urlwin (Christchurch) said he was sorry the president advocated “passing the buck.” His own opinion was that sales tax was iniquitous. The persons who had to pay it were the younger ones who had to collect things they wanted for homes. In England and America sales tax involved in retail prices was indicated separately, but in New Zealand it was hidden. Mr. H. O. Pittendreigh (Wellington) said he agreed that many persons who did not otherwise pay taxation did so through sales tax, and revenue had to be found. It was spread over the whole community, and therefore he regarded the tax as the most equitable tax in operation. The tax resulted in loading the consumer and was an instrument of building up the turnover of the retailer, said Mr. E. T. Allen (Auckland). However, the Government got it back from the retailer in income tax. The following motion submitted by the president was carried: “That this matter be referred to the executive, in conjunction with the taxation committee, to review sales tax and 1o take whatever action is advisable.