RELIEF SOUGHT

Nelson Evening Mail, Volume 80, 7 August 1945, Page 5

RELIEF SOUGHT

TAXATION BURDEN LETTER TO MR NASH Wellington, This Day Request* that provision should be made in the Budget for a reduction of preseni levels of taxation: failing that, removal of existing anomalies: and. failing lioi li. the apopintment of a Uoval Commission to investigate the whole incidence of taxation in New Zealand, are made by the Associated Chambers of Commence in a letter to the Minister of Finance, Mr. Nash. "Now that victory has been won in Europe, and with full regard lo the balance of New Zealand’s commitment* and obligations in the pacific zone, it is greatly to be hoped that I lie present excessive load of taxation will lie eased, particularly in those directions which will give encouragement lo the development and expansion of private enterprise.” says ‘.he association. “The future revenue# of the Stale are very largely dependent on the healthy activities of individuals and corporations engaged in the production of goods and services. The present weight of taxation—which has not been queried a* being essential to the war effort—is oppressive to business enterprise. and early alleviation would act a* a great stimulus to the benefit of the whole country. “We have more than once referred to you a long list of anomalies under the present laws relating to land and intaxes. These anomalies are undesirable and obnoxious in themselves, and constitute a ease for revision for that very reason. In addition, ,-i number <>f then have had their effects highly accentuated by the present high levels of taxation. “If the preseni levels of taxation were reduced, the operation of n number of these anomalies would not !*e so harsh. Conversely, if it is not intended that there should be any immediate reduction in present taxation levels. we the Budget to the correction of the anom"lf alteration to neither is proposed, we would renew strongly with you the case for the setting up by the Government forthwith of a Royal Commission *o investigate and report on the whole of the incidence of taxation in New Zealand. . . If wrongs exist under the taxation law, surely they should be corrected. If new anomalies are created thereby. they cannot—if the whole subject ta tackled fairly—create any anomalies greater than those which already exist. Sales Tax. “You advised us earlier that the Government would consider the removal of sales tax on building materials, but that there were difficulties in the wav. Wa would press again for the abolition of this fax on building materials. The Government of Australia has abolished sales tax on bu'lding materials, and surelv if difficulties could be overcome in Australia. it is not beyond the capacity <.f New Zealand to overcome them. Whatever the original purpose for which this tax was imposed, today it. is a most unfair imposition on industry and particularly on men returning to civil life, since, in effect they have to pay a premium to the State for the privilege of being allowed *o build a house.”