TAX ON CONSIGNMENTS.

New Zealand Herald, Volume XXXIII, Issue 10128, 11 May 1896, Page 5

TAX ON CONSIGNMENTS.

(BY TKUIHUPH.—fKK>S ASSOCIATION,] Napier, Saturday. Mr. McGowan, Tax Commissioner, was present at a largely-attended meeting, held in the Chamber of Commerce yesterday, when he explained at length tho object of tlig now taxes on consignment goods and commercial travellers from outside the colony. In brief, his explanation was that both taxes wore primarily designod to protect Now Zealand traders from unfair outsido competition. At present, a consignee of consigned goods no doubt paid a tax on his commission, but there was another profit—that of the consignor—which the new tax was designed to catch. The importer here paid on both profits. The profit had been fixed at 7$ per cent., because, after examination of many ad valorem invoices, that was found to be a fair average. Many consignees showed losses on consignments, but investigation showed those losses wore on goods taxed by weight or measure, thab in nearly all instances invoico prices wore about double tho true prices as shown by European and American prices current. If the true value wore shown there would be a profit. Where bom fide loss was shown no tax would be levied. Tho commercial travellers' tax was imposed because it was found extremely difficult to assess tho profits on orders they took so as not to lot thoso goods in free of tax on profits, which handicapped Now Zealand merchants. Mr. MoGuwan was listened to most attentively, and evidently made a great impression on tho members present, who passed a hearty vote of thanks bo him for his explanation. In the course of his remarks he stated that agitation againßt the consignment tax was got up by two firms, ono doing business in Auckland, and tho othor in Wellington, Christchurch, and Dunedin. To his knowledge one firm was using correspondence with tho Department B*B an advertisement for itself, to show that they looked after tho interests of consignors, in the hope of getting a monopoly of consignment business to tho colony.