Toys Are Not Cheaper: Sales Tax Burden

Greymouth Evening Star, 9 November 1949, Page 3

Toys Are Not Cheaper: Sales Tax Burden

WELLINGTON, This Day (0.C.). —“Prices of toys will not be less than last year; in most cases, if a comparison can be made, they are hkely to be dearer,” says a statement by tne Wellington Provincial Wholesale Fancy Goods Committee. The statement described as “definitely '-misleading” the announcement by the Price Tribunal that the price of toys was being reduced. “Because of the increase in prices by some manufacturers during this year, the trade agreed to small adjustments in their margins, but these adjustments will have practically no effect on probably two-thirds of the toys sold, as the retail price is under 55,” the statement continued. May Not Be Obtainable “The trade agreed to adjustments but the wholesale trade has shown the price control division that as toys are handled by wholesalers generally at a loss, reductions may mean in future that country districts will not be able to obtain toys. “If the Government desires to reduce the price of toys and thus assist the New Zealand fathers and mothers to brighten the Christmas days for their children with more or better class toys why do they not remove the sales tax on toys. ~ “The statement to the public should have been that if a toy cost 4s 2d last Christmas, it would cost 4s 6d this Christmas, but because of the new price order it may be only 4s 5d or 4s 4d If the Government had removed the sales tax it would have only cost 3s l°d. , , ~ . “It is also pertinent to ask. why tins price order was "not issued in August last instead of being held over until just before an election and after the bulk of the toys have been distributed to the shops." Sales Tax Content

“Will the price control division publish a list of identical toys sold last December and to be sold next December, comparing the manufacturers price, the sales tax, and the final retail price?” the statement continued. “In such a list it would be desirable to restrict the price range to not more than 10s, and to exclude the toys of a leading manufacturer whose prices were reduced in January, 1949, and are not affected by the present price order.” The statement sets out the sales tax content of toys. The figures given are:— , „ Retail price Sales Tax of toy included

s d s d 0 101 . 0 11 1 8 . o 3 2 6 - - . o 4 4 6 . 0 8 6 9 . 1 2 15 0 • 2 6