Sales Tax Yield

Manawatu Times, Volume 62, Issue 168, 17 July 1937, Page 5

Sales Tax Yield

AIARKED RECENT INCREASED Per Press Association. WELLINGTON, July 16. Improvement in internal business conditions in New Zealand is fully reflected in the steadily increasng buoyancy of the sales tax yield. CoilocLons during May established a record of £.309,79G, although the yields in the mid-year months are not usually the highest. The May yield was £14,714 h gher than in April and £76,303 abovo that for Alay, 1936. For several months past return* from this tax have been exceptionally buoyant, the figures for each of th* first five months of this year being considerably m advance of the corresponding months last year. This trend in indicative of a higher volume of sales of commodities. Certain necessities ar« exempted from the tax, and it is reasonable to expect that, with an Increase in purchasing power, a higher proportion of total sales would comprise taxable commodities, including luxury lines. The following table compares the collections for the first five months of the X>ast two years:— 3936 1937 £ £ January .... 233,103 294,431 February •• 186,875 394,624 A’arch •• 206,101 2!K5,-5.w April ..•••• 234,491 295,082 May 233,493 309,796* •Record. As an instance of the increasing value o* the tax Consolidated lund, collections for the first two months of tho current financial year totalled £604,878, an increase of £j 36,894, or almost 30 per cent, over the amount collected in the corresponding period of the previous year. If the rate of increase is maintained the yield for the full financial year should easily exceed last year’s total of ££3,050,985/ the highest since the tax was imposed in February, 1933.