TAXATION.

Lyttelton Times, Volume CXVIII, Issue 18574, 29 November 1920, Page 6

TAXATION.

It stems a pity that the Prime Minister coultl not see his way to grant) the request of the Chambers of Commerce conference for a commission on taxation. Mr Massey's reasons for declining this •course are unconvincing. He mentioned the difficulty of getting suitable men for the task. They must be competent, he urged, and they must be disinterested. 01 s course, such a commission would need to bo oompetent, and we should say there would be no great difficulty in securing the assistane* of men weft qualified for the inquiry. But tffaey need uot necessarily bo disinterested. In fact, all the interests affected ought to ba represented ton neh a comoiissiea, which would take

evidence,,., analyse it, and make recommendations to the Government. The report of such a commission would inevitably bo a valuable guide to the Honse_ of Representatives next session, when the large duty of revising the Customs tariff is to be undertaken. Bat With the results of a thorough investigation into the whole subject of the incidence of taxation, Parliament would be doubly armed for fte work, and there is no reason why the land and income tax sohedules, the death duties, and all forms of taxation should not be overhauled, notwithstanding that 6he House did something on these lines during the reoent session. On the question of Qußtoms duties it seems that the Government is determined to confine the work of investigation $o its own Departmental officers in the first place and the Publio Accounts Committee in the second. We oertainly think that fcba officers charged with the preliminary Inquiry are to some extent subject to the disqualification—according to Mr Massey—of being interested, because whatever changes may be decided upon are Hkely to materially affeot the amount of labour which they are required to perform for the wages they receive. We do not suggest that their, views will b* prejudiced on this account, but the Prime Minister has laid it down that the task of inquiry should not be undertaken by people who might be affected by the results. We are apprehensive owing to another aspect of the snbjeot of Customs taxation since the deputation to Mr Massey on Friday. He indicated that the line he has in view is to enlarge the policy of preference to British imports. That sounds well enough, of course, and a fair soheme could be developed. But if preference to Britain and to British dominions is merely to take the form of additional duties on foreign goods, rather than the lowering of duties on British goods, it is to be feared that the real, effect will be to increase the tax revenue and the cost of living. There is oertainly strong ground for once more renewing the request for a commission of inquiry.