“LONG OVERDUE”
TAX REVISION BRAKE ON INDUSTRY CAPITAL DISCOURAGED The need for an immediate review of the whole system of taxation, which he described as cumbersome, difficult to follow, and expensive to operate, was stressed at a meeting of the Council of the Wellington Chamber of Commerce by Mr. Gordon Stewart. He said that taxation in this country ran counter to all the accepted canons of taxation and a revision of the tax laws was long overdue. The question, said Mr. Stewart, had been given serious consideration at the recent conference of Associated Chambers, when it was unanimously agreed that the taxation system should be examined bv an independent committee of experts, with a view to its clarification and simplification. Taxation was investigated by a committee' appointed by the Government in 1922. That committee was concerned with "the weight of tax as well as with anomalies in the laws. The position regarding taxation was much more critical now. Most of the anomalies still existed, while the weight of taxation had increased very much. The committee stated that “the maximum rate of the graduated tax should first be fixed at a level that will not cause an outflow of capital from New Zealand. but will encourage new overseas companies to come to New Zealand.”
Maximum Rate
They went on to state that in their opinion the maximum into for companv tax should not exceed 5s in the pound and that any deficiencies in income Should be provided by Governmental economies in administration. "The maximum rate is 12s in the pound to-day, said Mi, Stcwait. High taxation has definitely retarded promess I know of one overseas company' which was prepared to invest up to M 000.000 in an industry eminently suitable to this country but. after going f u ll v into the question of taxation, the company has decided to establish the factory in another country. In other words. New Zealand is not. competitive with other countries the high rates of taxation prevailing.”
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Bibliographic details
Gisborne Herald, Volume LXXIV, Issue 22289, 26 March 1947, Page 3
Word Count
332“LONG OVERDUE” Gisborne Herald, Volume LXXIV, Issue 22289, 26 March 1947, Page 3
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