SALES TAX BILL

Grey River Argus, 23 February 1933, Page 5

SALES TAX BILL

22 AMENDMENTS Some Improvements (From Our Parliamentary Reporter) PARLIAMENT BUILDINGS, February 22. Apart from changes in the list nt exemptions, twenty further amend’ in nts have been made in the Sales 'fax Bill. These were introduced in .he House this afternoon by Air Coates. Al any of the changes are to improve the machinery of the Bill, the principal alterations being to provide for thp collection of the tax on all taxable imported good, whether They are intended for home consump-

tion or otherwise, and for an increase in the percentage allowed on imported goods in ascertaining the sale value of five ler cent., making this allowance now 25 per cent. OWN USE EXEMPTION DROPPED In the original Bill .i hr goods imported by wholesalers and retailers (including manufacturing retailers) and by the general public for their own use were exempt from the Sales Tax. The changes which have been made impose the tax in all such cases. In explaining the reason for this, the Minister said .that the Government had gone into the. matter, and had come to the conclusion that it would bo more satisfactory if the Bill were so finmed as to impose the .tax in these ease-. “No doubt, cases of difficulty, administrative and otherwise, will occur under the amended proposals, but any such matters can be dealt with «• thev arise.’’ added the Minis-

ur. “It is not at present intended that the Sales Tax should be collected on every packet, however small, imported by tost by private persons for their own use, as it is considered that the cost of collection would probably be greater that the tax which would bo collected. This matter, along with many others, will be gone into as soon as the BiH m passed.” There is now no need for the clause throwing the onus on the importer to diow that goods arc not for sale, and this has accordingly been drop-

MANUFACTURING RETAILERS A furl her simplication of method to be used in assessing the tax to be paid l.y manufacturing retailers :s .’provided in another now ealusc. Un der it. manufacturers arc entitled to either deduct from tre sales value 'of manufactured goods the taxable value of the materials used, or to deduct from the sales tax the tax already paid on materials. The Minister said he considered that this would be ot great assistance to manufacturing re tailors. Had the original provisions

not been altered, it would have been uei essary for manufacturers to keep separate records on those materials upon which tax has been paid alter February 8 and those which were in stock prior to tha't date. , An addition has also been made to the Clause providing for the deduction of Sales Tax on the goods used in manufacture from the, tax paid on .the manufactured article. To ensure that where an allowance is made on this account the taxpayer will not be able to deduct discount or any part of it a second time, an important additional provision permits refunds of Sales Tax to be made where warranted on the material used in the manufacture of goods which, when comip’letc are no* taxable

HOME CONSUMPTION RATES The method of arriving at the sale value of goods imported for home consumption has been changed to pro | vide that the sale value shall bo the sum of the equivalent in New Zealand currency and duty and 25 per cent. In flip original Bill, the addb tional amount was 20 per cent., but it is considered by the Government that that percentage did not do relative justice as between the wholesalers and retailers.

NO DISCOUNTS ALLOWED FOR. A new clause Ims been added to tin? .-•'it ion providing that sales tax shall bo paid on Jhe credit price, and not cn the cash price. No deduction shall Li made because of any discount, rebate or allowance granted in consideration of the payment of the pur chase money at or before the time of tale, or within any specified time ‘hereafter. If the credit price were nut taken as the basis, said the Al ini ster. gravp inconvenience would bo caused to recognised commercial | fae-

“The Bill gave authority to a person who had entered into a contract after The taxes were imposed to add to the contract price the amount of any sales tax paid by him. As every person wits, after the introduction of the resolutions imposing .taxi, in position to protect himself, the clause had been amended to extend this protec tian only to contracts entered into before February.

INVOICE REQUIREMENTS. Every wholesaler must show on his invoice the amount of tax payable on goods, states another new clause. 14 This is desirable, not only in. the interests of the purchaser of goods and of the Department, but it enables the manufacturing retailer to know the amount of tax actually paid on. his materials for which a claim may be made.” added the Minister. r< Tt is aLo proposed -that provision should be made by which the vendor may recover the amount of tax shown on the invoice. It is understood that in Australia, certain retailers refused to pay the Sales Tax to the wholesalers

until a similar provision was inserted in the Commonwealth law.” A NEW OFFENCE. A new offence is created by an amendment which provides that no invoice shall show sales tax which is not payable. The Alinister said that it had come to the knowledge the Government that certain ness firms were issuing invoices showing as Sales Tax amounts in. excess of .those actually paid or payable. Where tax has been ifiaid on any item included in the Resolutions imposing- tax. and which is not in the Bill ratifying the resolutions, the right is given to claim a refund from the Collector of Customs.

CHANGES ALLOWED FOR. A new clause provides that Salos Tax shall be payable only if it is in .accord with both the terms of the Reflation and the Act. Thus, the taxpayer will get the benefit of any change made in the basis of taxation between the introduction of the Resolutions and the passing of the Act. LICENSES. Except with the consent of the Comptroller of Customs, 'no person shall be licensed a.i a wholesaler and manufacturing retailer at the same time. (,'ertain firms are retailers or manufacturing retailers in some ecu ires and wholesalers in others. Under hr original provision it was doubtful whether a person could be licensed as a wholesaler or as a manufacturing retailer in one centre without being regarded as being so licensed right throughout New Zealand. The change is made to enable the Department to overcome it his difficulty.

The provision requiring securities from persons licensed under the Bill has been deleted, while a change has been made in tlin Clause providing for a penalty of £loo' or the sale value of the goods, whichever is the greater. in the cases pf sale by an unlicensed person, by making the Clause only applicable to the sale or manufacture of {axal>ie goods. APPEALS. Another change permits costs to be granted against the Collector of Customs in the cases of successful appeal against the Collector’s assessment. Under another amendment wages an.,l salaries are exempt from the provision which gives power to a Comptroller to collect sales tax, fines or costs from

any person owing money to a person liable for tax. ! Another alteration provides that 111 formations under the Act must be laid within five years of the commission of an offence. The powers of arrest, without war rant under Ithe. Act are limited to the cases of (persons about to leave the Dominion. ORDER-IN COUNCIL. AU Order-in Council. Including re gulations made under the Act, must be laid on the table of the House within fourteen days of being made, or if Parliament is nojt in session, within fourteen days of its opening. The House may decide that any Order in-Council may be revoked or varied, and where such an order is revoked or varied, the Sales Tax paid under its provisions in excess «of the tax (if any) otherwise payable shall be refunded.

Revised Lists 56 MORE EXEMPTIONS (From Our Parliamentary Reporter.) I’AKLIAMENT BUILDINGS, February 22. The revised list of exemptions from the Sales Tax, as introduced in the House to-day, makes a number of im port ant alterations in the original list. The additional items number 56, while items that were included in the original list, which do not appear on the revised list, total sixteen. These numbers do not give an ac curate statement of the position, however, for some *of the items which have been struck off the list have been included in other forms. An example of this is to be found in regard to packing materials. All of these have been deleted, but two comprehensive clauses have been included covering all manner of conitainers.

ADDITIONAL EXEMPTIONS. Tiie additional items exempted arc as follows: —’ Animal fat* or oils, crude or refiend. Bags, bottles, boxes, casks, crates, cylinders, drums, jars, sacks, tins, woolsacks and other containers, empty or containing non-taxable goods and being ordinary [trade containers for packing goods. Bags, bottles, boxes, cases casks, crates, cylinders, drums, jars, sacks, tins, woolpacks and other containers which contain taxable g’oods and which in the ordinary course of business are charged for extra, and for the value of which credit is allowed when they are ref urn cd to the seller.

Box strapping metal suitable for binding cases, crates and similar arti clos. also seals for use therewith. Handles. Carbide *of calcium. Chemicals, drugs and similar prepara tions approved by the Alinister for use in hospitals and other institutions when such preparations are purchased exclusively for use in such hospitals and other institutions, and not for re-sale. Briquettes, carbonettes tind other coal are included in the fuel group. Coffins. Cornflour. A r acuum pans, vats’, or tanks other than those lined with glass, pprcelain or enamel, ’ wheii sold to a dairy factory or a manufacturer of milk pi’d ducts Also the following articles, made of rubber, identifiable as parts of dairying machinery, viz:—lnflation tubing,i

milking machine rings, washers, releaser connections and similar rubber fittings. Eggs, fresh or preserved, and egg pulp. Stock and poultry foods. Acetylene gas is included in the

gas group. ! Cow, horse and pig hair in its nah ural state. Hemp and tow. Raw hides, skins and pelts. Aletal hoops in short lengths, specially suitable for wool baling or simi lar i] tirposes. Horns, hoofs and bones. Lime, including quicklime, slaked lime and lime stone. Alalt. Cooked meats are now exempted, but tinned or similarly packed meats are liable. Al ilk and cream cans. Alilk and cream, fresh, pasteurised, powdered, condensed or preserved, also buttermilk powder. Cement coated nails. Paper patterns. Postal franking machines. Rabbit poisons, including carbon bisu’phide, phosphorised pollard, strychine and similar poison# Rice flour. Sago and tapioca. Fowl grit. Sausage, casings. Sodium chlorate.

Sprav pumps, foot or hand power. Tar/ Tombstones. Wate r. Wood, wool. Greasy, sliped. scored or carbonised woo 1 ., Tallow. Dressed or undressed rive, also rice meal, refuse and rice meal. Anhydrous ammonia. Tubular woven cotton cloth, sj octal ly suited for meat wraps. Cheese bandages or cap:’. Payer N.E.J • cut or shaped for wrappers, boxes or other receptacles. Cellophane, plain in sheets, UTiprinted a'so N.E.I. imprinted paper; true vegetable parchment; glazed trans

parent greaseproof paper; imitation parchment paper and similar paper of such quantities as .may be approved by ;he Minister; also paper other than wrauuing papery waxed. imprinted: also such Taper printed ami then waxed; paper or cellophane wrappers, printed, lithographed or ruled N.E.1.: also wrapping papier printed or imprinted: printed books, paper and music N.E.T.; religious tracts, handbills and folders.

Cordage and twine suited for use In fishing lines and twine suited for use in the manufacture of netting and nets in quantities approved by the Alinister. EXEMPTIONS REMOVED. Items in original schedule which have been deleted arc*— Articles and materials for the sole use of public hospitals when purchased exclusively for use. by hospitals and not for re-sale. All individual of packages. Surgical, dental and opticians instruments. Scientific and philosophical instruments. Hydro extractors, oil engines, air

compressors. Gas compressors. Artificers tools. Bill hooks, bush, hooks, slashers and hedge knives.