SALES TAX

Nelson Evening Mail, Volume LXVI, 19 August 1933, Page 4

SALES TAX

HIGH EXCHANGE RATE RECOVERY HAMPERED Though there is undoubtedly a brighter and more optimistic tone among the public generally, it has as vet bad only a partial reflection in improved business, according to statements by leading wholesalers and retailers in Christchurch (says the “Times”). They point to the high exchange rate and the sales tax as reasons for the delay in the recovery of business generally. The general opinion among retailers is that the cost of goods is too high compared with their value. This high price, they contend, is mainly a result of the increased exchange rate. It is stated that goods which arc worth about 2s have to be sold for 3s because of the exchange and the sales tax. “There are signs of better days, and the whole horizon seems to be brighter,” declared the manager of a large retail firm. “There is as yet no great movement in business, which, of course, is dead just now, so soon after Grand National week. We have carried the burden and got home without losing any weight.”

SHOULD BRIGHTEN SHORTLY “I think that there is a better tone, but I don’t think it has reached business yet,” stated the manager of a large wholesale firm. “Trade is practically the same as last year, hut retailers may be holding olf in the expectation of a reduction in the exchange rate, which is hampering buying. We will be disappointed if this better tone is not reflected in business in the next few months. Up to the present our trading figures are about the same as those of last year. If the increased totalisator figures are any indication, there should .be a brightening in business shortly.” Business could he clone if prices could be brought down to a reasonable level, said the manager of another firm. The liigli landing costs, for which the rate of exchange was responsible, made it necessary to charge the public prices beyond the present value of the, articles. Wholesalers and retailers were holding off, probably in anticipation of a reduction in the rate. Business was slightly better than at the same time last year, but is must' be remembered that 1932 was about as bad as it could have been. Business and commercial men were not overpleased yet, and wanted things to be much better. Many of the importers depended a good deal on country trade, which was slack owing to farmers having little or no money.