Sales Tax Must Go

Manawatu Times, Volume 60, Issue 174, 26 July 1935, Page 7

Sales Tax Must Go

Too Heavy a Burden on

Trade

FEARS THAT IT WILL STAY UNLESS PROTEST MADE

_ One of the major aims of the Associated Chambers' of Commerce at the present time is the abolition of th« sales tax on the ground that it is unlair in its incidence and a heavy burden on traders who strongly object t* being made the medium for the collection of Government taxation.

Reference to the matter was mads at last evening’s annual dinner of the Palmerston North Chamber of Commerce by Mr. A. H. Allen, Dunedin, president of the Associated Chambers. Mr. Allen said the tax was introduced as an emergency measure at a time oi grave national anxiety when Government revenue was diminishing at an alarming rate, due to the economic blizzard.

“Though we strongly disliked this new form of taxation and made representations to Cabinet, we realised it was our duty to assist the Government and offered no serious objection to its introduced,” he added. “Wo are now pressing lor its abolition for we realise that unless strong and persistent objection is raised, this tax will become permanent. The tax was originally estimated to produce in a full 12 months £1,600,000, but this year it will return probably £2,500,000 and as trade improves will show a corresponding increase. The tax is nominally one of 5 per cent., but experience proves it is often a 10 per cent, impost and it sometimes even higher. It; entails muck Unnecessary work in business and further increases the cost of living and production. It also necessitates an increase in the alrcadv huge civil service staff.

“Taxation should be under fewer headings so that the people may know exactly what they arc being called upon to pay. It is now spread under many headings, mostly small in themselves but aggregating a.huge and burdensome sum. As the Finance Minister has announced a Budget surplus of £1,500,000 for the j-car ended March 31, we consider the time is now opportune to press for the total repeal of the Sales Tax Act, instead of a gradual scaling down of the charge which would not diminish in the least the work entailed for business houses.

“If the Government still requires some portion of the present revenue from this tax, then we recommend that it be raised under some other form of existing taxation.”