DODGING THE TAXES.

New Zealand Herald, Volume LVIII, Issue 17784, 18 May 1921, Page 8

DODGING THE TAXES.

by Arrangement.)

During the war the British Government in the nationl interest, restricted the sale of liquor. The brewers alleged loss of •trade, claimed and got allowances off license duties. The real position was : During 1914 to 1919 (inclusive) allowances on kccuse fees to brewers. £7,400,000; increased profits made by 16 leading breweries as compared with 1914," £IGSOO,OOO. So that, while the trad€ as a whole dodged taxation during war-time to the tun© of £7,400,000, it was making actually enormously increased profits, as will ,bo seen from the 16 companies abovementioned. The public purse lost over seven millions it was entitled to, while the trade, pretending loss, was "profiteering. r In New Zealand brewers are allowed a margin of 10 per cent, to cover possible waste in converting worts to beer—thev pay excise duty on only 90 of every 100 gallons of beer the worts are estimated to make. British brewers are allowed only 6 per cent., which £he Chancellor of the Exchequer said was more than enough for efficient brewers. Suppose we say 5 p(? a c ®, nt I? then on the 1920 output the Now Zealand brewers, by cefc. ting 10 per cent., obtained 800,000 sall°oT fisSn ron I doty n free^ and P ublic ♦ « ii 1 n ey Were entitled to. After allowing Is per gallon for cost of production, this 800.000 gallons sold at 5a per gallon hnngs the trade the handsome sum of £160,000. Do you know of a n y I Nw Zealand industry that is allowed to escape taxation to 'the f,mm of £20,000 annually I—N.Z. Alli.nc. ft ' ■ (10)