EXEMPTION LIST

Hokitika Guardian, 15 February 1933, Page 2

EXEMPTION LIST

THE SALES TAX QUESTION

DANGER OF OVERLOADING

(Per Press Association — Copyright.'

WELLINGTON, February 14

Telegrams and letters asking that /efforts be made to place items on the sales tax exemption list have been pouring in on members of Parliament during the past two days. However, in replying to questions asked following the appearance of the bill to-day, the Minister of Customs, Mr Coates, indicated very clearly that the Government would not consider making many more additions to the exemption list. He definitely advised business men not to incur the .expense of coming to Wellington on wliat would probably prove to be a fruitless mission and lie suggested the better plan would b© to make representations through local members.

The subject was raised by Mr W. E. Parry (Labour —Auckland Central) who made representations on behalf of an) Auckland firm for placing coolers and vats imported for dairying purposes on the exemption list. Another firm which manufactured gate hinges desired similar 1 ' treatment, as such items were largely used by farmers. Mr Parry suggested that they deserved consideration, particularly as such commodities as dairying machinery and wire were exempted, . The frank declaration was made by Mr A. Harris (Government —Waitemata) that an enlargement of the /exempted list would greatly complicote the working of the new legislaion. There was already a long list and the pt:,ipose of the tux would be largely defeated if that list were lengthened. He agreed that there should be some general exemptions, such as food-stuifs and farming requirements. He was being inundated with correspondence from traders who were unable to get information from local customs offices.

“However, I think it would be less harassing if we cut down these exemptions,” said Mr Harris. “Otherwise, some firms will have to keep special staffs for detailed work in connection with this taxation.” Mr D. G. Sullivan (Labour —Avon) asked if the Government regarded the present exemption list as being hard and fast. Members wanted to know whal( advice to give to traders in their constituencies on that point.

Replying, Mr Coates said that Mr Harris was undoubtedly right when he argued that it would be much easier to administer the act with as few exemptions as. possible. On the other hand, one did not want to create unnecessary hardship by increasing the cost of the necessaries of life. Obviously it would, be very difficult to grant any- more exemptions. There might be some unanswerable cases for exemption.

While careful consideration would he given to the representations, tlm Government did not intend to consider the question of exemptions de novo. He would not like to sr.y it was worth while for people to come to Wellington ini an endeavour to secure the placing of further goods on the free list. They should see their member of Parliament first.