WAR TAXATION.

New Zealand Herald, Volume LII, Issue 16010, 31 August 1915, Page 4

WAR TAXATION.

RAILAGE ON COAL. COMPANIES COMPLAIN". IMPORT TAX WANTED. A roVKF.RKMK of representatives of Auckland iiwil tympanies was held yesterday to consider the question of '»Jr taxation as affei-ti.ru the nal industry. The coinpanies represented were: Taupiri coal Mines, Ltd., l'ukemiro («-llbnes. Ltd..

Waipa Coili-ries, Ltd, Northern <",>al , Company and H:kurai._'i lonipary. Under t:.- Government's pr'.-j»»-*a'.s the : companies will have to pay an additional ! 10 per cent, railage, and as no duty is to j be placed on imputed >-.->. l they feel they I wiil be placed at a peri'M? disadvantage. After discussion it was decided to draw i the attention of the Prime Minister, and j the Mini»t.'r *'■ r Finance. Sir .h ■>•■; h J Ward, to the ihllwin; mdnts which :l i was consider.-d would sh.ow '.hat the pro- j posals for war taxation a-- outlined in the Budget would prejudicially and unfairly | arlc' t the '--A ininiiij: industry ill N-w , Zealand:—The average raiia.-e or: all i classes of Waikato coal deli- .red ;. all centres was 6s 5d per ton. and a 10 per I cent, increase on this rate meant, on the average, nearly S-i [it ton. 'I '■>•• >*-*l of railage in the delivery t> An klai 1 of \Miarii:arei c\ka.l was 2s 9d "»t t.,n, and a 19 per cent, increase on th.s rate means nearly 3jd per tun. Only one of the | Auckland coal companies had able j to pay a dividend this year. consequently i these companies could not meet the in- j created freight » ,-to".it of th«dr present ! resources, and it inu.-t, th.ereforc. He j passed on to the consumer—the c*-neral i pubiie. The position <■'. the.-e com}>anies j was rendered more chili, ul: by the fa--: j that, owing to war conditions, it was impossible to obtain a full output, and that th«? cost of all mining requisites had! largely They were also ;•: | direct competition with the supplier; of | Newcastle coal, whi.- h was admitted int-v New Zealand to the value of about £450.000 annually, absolutely duty free, and there were other imported coals also admitted duty free. If the railway freight was raised, and no duty put on imported o>als. the extreme vantage at which these companies were p!a< ed at oni* became apparent, not only would the output of coal be most detrimentally a fie. ted and the welfare of <- al r-ompanies seriously injured. but as an inevitable consequence the railway revenue would be reduc-ed. A further very important matter w.us the position with regard to contracts already entered into and binding. Unless legislation was provided enab'inz the companies to increase the prh of coal under their contracts to cover increased freight cost, manv companies would rind themselves condemned to deliver coal during the remainder of these contract periods at an actual loss. The companies, therefore.

asked that the proposal? in regard to coal be reconsidered, and that a special import tax be put on all imported coal, and further relief provided in regard to the price of coal now being delivered under binding contracts. A deputation consisting of Messrs. E.

W. Alison. Taupiri Coal Klines. Ltd.. and W. H. Hannay. Waipa Collieries. Ltd.. v-as appointed to -wait on the Prime Minister and Sir Joseph Ward regarding the matter. ATTITUDE OF FABMEBS. "NO DESIRE TO AVOID SHARE." A special meeting of the Auckland provincial executive of the New Zealand Farmers' Union was held yesterday to consider the taxation proposals outlined in the Financial Statement. Mr. A, A. Ross presided. Regarding the land and income tax, the executive considered that the proposals were fair and reasonable in the circumstances, but considered the exemption should be reduced from £500 to £200.

The increase in railway charges, the executive thought, was justified on sound business lines, and it- had no objection to the proposals, provided the charges on manures, agricultural lime., agricultural machinery, kerosene, benzine, and fencing material were left as at present, as these articles were an aid to increased production. The executive strongly objected to the tax on kerosene, as it* was the source of I most of the light in country districts, j People residing in the country were, it I maintained, as much entitled to cheap! light as those in cities and towns In connection with the duty'on cheques, the executive considered that" there should be no increase in the present rate of Id up to £10. The dutv should be 2d on cheques from £1C to £50, and after that, graduated. The reason for this suggestion was that most household accounts were under £10 per month, and it 2d was insisted upon on small amounts, it would mc.in that one cheoue. instead of several small cheques, would be drawn and the whole of the accounts would be paid in cash. This would result in loss of revenue. The same method of taxation should also be adopted in regard to receipts. The executive also agreed that admission tickets to all places of amusements Should be Resolutions embodying the above views were carried.

The following motion was also adopted • 1 he executive fully appreciates the difficult task falling upon the Government nv raising m the most equitable manner the large sum reouired for war purposes -nd wishes it to he distinctly understood that Its on, rct is to assst - to the beSi of its r.b-.i-.tv m attaining that end. ai<d that, as rrr-resentintr the farmers of tiis province, the executive has no desire to avoid any portion of its just share rf the burden.

Copies of the resolutions will b* forwarded to each member of Parliament, the Dominion executive of- the Xew Zealand Farmers' Union, and to farmers' unions throughout Xew Zealand.

THE MOTOR SPIRIT TA5^.

DIFFERENTIATION- DIFFICT LT

I The opinion that creat difficulty would i arise should the Government adopt f\he ; suggestion that it slum!,! differential* 5eI twet-n "industrial" ami '-pleasure" oaks when imposing the proposed tax of id ' per pallo-i on motor spirit was expressed yesterday l,v Mr. Neville Xew.xvnb for- , merly pre--i dent of the Auckland AutcV nubile Association. He pointed ..at thai : nstiy business people used ordinary! I motor-cars in connection with their ocai-\ i P-tions and therefore, ho considered. .those machines . „uld rinhilv be ronsidered ;as '• industrial " vehicles." Many land ■ a_'ent>. :•*;- i:.-i.inve. used motor-arses- . ters:vcly mi connection with their businesses. Another reas. n influencing him in I Irs opinion that the tax should be uniform : was that owners of "private" or " pleasure '' cars were crjrerallv men who Contributed largely to tie State revenue I through the income tax and through various other sources. Discussing the tax I generally. Mr Xetrconib expressed tie I opinion that the proposed id per gallon I was far too Inch" in tact, he taught the I Minister for Finance must have meant |4d per tin. which would mean Id per [gallon. With the rapidlv increasing consumption of benzine the Litter tax would mean a large contribution to the funds : of the country.