HANDICAP TO TRADERS

Gisborne Times, Volume LXXXIII, Issue 12603, 12 July 1935, Page 7

HANDICAP TO TRADERS

OBJECTIONS TO SALES TAX. “CUMBERSOME AND UNFAIR.” Objections to the sales tax particularly on the grounds ot tiie inronvenicnco it- caused to business people who were obliged to act as collecting agents and on the score of its unfair incidence’were emphasised by Mr A. H. Allen, of Dunedin, president of the Associated Chambers of Commerce of New Zealand, in the course of a speech given at the quarterly meeting of the Invercargill Chamber of Commerco. “At present we are pressing for the .abolition of the sales tax. This tax was originally introduced as an emergency measure during the depression when our State revenue was rapidly falling,” Mr Allen said. “.Although the commercial community looked with disfavor on any additional taxation, they raised no serious objection since they did not wish to embarrass the Government. “Recently tho Minister of Finance announced a surplus for the year ended March 31 last of £1,500,000. As the tax threatens to become permanent, unless strong objection to it is raised, we now consider the time opportune to press for its abolition and mot for its gradual reduction, which would entail for the business people the same amount of work and inconvenience as if the tax were maintained at the present level. “Originally,”. remarked Mr Allen, “the tax was estimated to produce for, twelve months the sum of £l,600,000. This year the tax will probably return not less than £2,503,000, and as trade increases the return from this source will steadily grow. The rate is nominally 5 per ' cent., but business people know that in practice it works out at up to 10 per cent. The tax As cumbersome, irritating, and unfair in its incidence, and is a great handicap to traders. “A further objection by ' traders is that they, are being used by the Government as a medium for the collection .of its taxation, The tendency of the Government is to spread taxation under, more arid more headings, principally with a view to not alarming the taxpayer by a high rate of tax under any one heading,” ' said Mr Allen. “The Associated Chambers of Commerce desires to help the Government at all times, and if they still find it necessary to secure some portion of the loss through the abolition of this tax, then it is suggested that; the amount necessary- to bridge tho gap be-added to the taxation under one of the remaining headings.”