SALES TAX REVENUE

Hawera Star, Volume LIV, 9 March 1935, Page 7

SALES TAX REVENUE

REQUEST FOR ABOLITION

YIELD EXCEEDS ESTIMATE

VIEWS OF HAWEEA BUSINESSMEN. B Support to a movement by the Associated Chambers of Commerce for the abolition of the sales tax was 1 given at a meeting of the Hawera chamber last night. Those present were Messrs. E. K. Cameron (chairman), E. Dixon, B. McCarthy, A. Coleman, W. M. Egglestone, J. H. Fletcher, F. W. Horner, J. E. Campbell, B. C. Bennett, T. M. Ellis, E. S. Allwright. A letter from the Associated Chambers of Commerce gave reasons for the abolition; It was pointed out that there had been an improvement of revenue and a prospect of a budget surplus. When the sales tax was introduced the official estimated yield was £1,600,000. In the full twelve months of the 193334 year the actual yield was £1,347,000. Official figures showed that merely for the six months ended September 30, 1934, the yield from sales tax was £1,020,000, as compared with £863,000 for the corresponding period of 1933. Additional reasons were (1) the tax was introduced as an emergency measure at the time of instability in national revenues, but it now bids fair to be a permanent tax unless efforts | were made to have it abolished; (2) it was a misnomer that the tax was 5 per cent., experience showed that it ranged from 13 per cent, to lo per cent.; (3) abolition alone would be satisfactory. A reluetion in the nominal rate of the tax would not reduce the cost of collection in big business, houses. Mr Dixon considered the tax an iniquitous one. The business people had felt the effect of the slump probably more than the farmers. Because they could not pass it on, the retailers often had to foot the tax themselves. He felt that the time had arrived when the chambers should definitely press for abolition. In seconding the motion Mr Bennett said that apparently the tax had. brought in more revenue than was at first intended. He also thought the tim ehad arrived for its abolition. On the motion of Mr Dixon, seconded by Mr Bennett', it was decided to support the Associated Chambers of Commerce. ITINEEANT TEADEES. A further letter from the Associated Chambers stated that for various reasons it had been decided not to pursue the request for a more equitable fee for itinerant., traders and auctioneers. Details were asked of any peculiar local conditions. Mr Campbell said that the question was on the agenda for the municipal authorities’ conference. iMr Bennett considered that the Hawera Borough Council should certainly keep track of all itinerant traders. Some sort of badge for the trader would be useful, said Mr Cameron. That would keep a check on them. Mr Horner thought that too much \ attention, should not be given to the question, as many of the unemployed were securing a livelihood from such trading. No one should canvass the town without a license, said Mr Bennett. It was decided, to take no action until after the municipal authorities’ conference.

The Taranaki Chamber of Commerce inquired whether the Hawera chamber would support representation to the Transport Board for the granting of a license for at least one trunk air service between Auckland and Invercargill. It was decided that the matter should be heard in committee.

EXPENDITURE ON AEEODEOME,

Before the meeting went into coim mittec, however, Mr Dixon said he had some remarks which he would like the Press to note. A few years ago there had been quite a fever over freezing works. Practically every town had considered that it should have one, with the result that thousands of pounds had been wasted. The same position was arising concerning aerodromes and he considered that the time had come for the Government to give some lead. Aerodromes had been erected at Hawera, New Plymouth ana Wanganui, while one was contemplated at Stratford. Had the Government given a load as to the most suitable ports of call, thousands of pounds would have been saved. The Chambers of Commerce should ask for a lead, not only for the present, but also for the years to come. The Hawera branch of the Douglas Social Credit Association advised that Colonel Closey, of Auckland, would be visiting the district shortly*. An invitation was extended to the chamber to convene a public meeting or Colonel Closer could address the members. — No action was taken.