SALES TAX.

Manawatu Standard, Volume LIII, Issue 61, 8 February 1933, Page 12

SALES TAX.

BUSINESSMEN’S OPPOSITION. WELLINGTON, Feb. 8. Opposition to the fixing of a sales tax in New Zealand on the grounds that it is costly and cumbersome was expressed by the executive of the Wellington Chamber of Commerce. It wis stated that the necessary revenue con'd ho secured by increased direct taxation. . The subject was introduced by Mr A. D. Kerr, who had prepared a lengthy statement upon the administration of the tax in Australia and Canada. “In no case of taxation lias the actual return fallen so far short of the estimated return than the snles tax,” Mr Kerr said, at the conclusion of his survey of the position. “If the Government is determined to put into operation a snles tax against the advice of Mr Dowine Stewart let it ho a simple and an easy one, which will not cost either the Government or the merchant a disproportionate sum to collect. “The imposition .of a sales tax will undoubtedly interfere with the national demand for commodities, thus decreasing the volume of transactions and thereby accentuating the main problem of business to maintain sufficient turnover to meet the fixed overhead charges.” After a brief discussion, the following motion was carried unanimously: “This chamber urges oil the Government the desirability of avoiding a sales tax, which form of taxation has proved costly in collection, disappointing in yield, inequitable in incidence, and extremely complicated in operation. This chamber urges on the Government that it should secure its necessary revenue by increased direct taxation of income and wages.”