CHAMBER OF COMMERCE

Manawatu Standard, Volume LX, Issue 261, 2 October 1940, Page 10

CHAMBER OF COMMERCE

EXCESS PROFITS TAX

PROVISION FOR HARDSHIP

Tlie monthly meeting of t'he Palmerston North Chamber of Commerce was held last evening. Those present were Messrs K. A. Henderson (chairman), J. A. Nash, J. A. West, R. G. Connal, A. P. Stuart, H. G. Mills, H. L. Cunningliame and F. G. Opie. The Associated Chambers of Commerce forwarded a copy of a reply received from Hon. W. Nash (Minister of Finance) to representations in relation to excess profits taxation. The letter stated that the full details would necessarily have to he presented to Parliament. However, the guiding principle would he that all excess profit derived during the period of t'he war was to be taken by taxation for war purposes. In designing the machinery necessary to enable the transfer of this excess to the Crown, the Government had in mind an administrative procedure which should amply safeguard taxpayers against any hardship or inequalities which might arise from the adoption of an inelastic formula. Mr Opie remarked that' “one could not help but be impressed by t'he consideration given to the taxpayer.” The president made reference to the compulsory loan and said that the general opinion was that New Zealand was in a period of inflation, but the Government had instituted a deflationary measure in issuing non-interest-bearing securities. The loan was supposed to be universal, but was not, and only the larger incomes would be affected.

. Mr Nash expressed the opinion that the compulsory loan might be making the way tor a reduction in the rates of interest.

The subject was not discussed further.

It was decided .that one delegate attend the annual conference of the Associated Chambers at New Plymouth in November. The appointment of the delegate was left to the president. In regard to proposed amendments to the by-law covering itinerant traders the City Council advised that the by-law providing for an increased fee (from £5 to £l2 10s for a license) had been prepared, together with other amendments to the by-laws. The delay in bringing in the amendment had been occasioned by the inclusion of the other amendments, this having been effected on the score of expense. —The letter was received.

The meeting decided to support a suggestion, brought forward by Mr Nash, that the shops and. business premises observe a half-holiday on the Wednesday of the Spring Show.