SOUND FILM TAXATION.

New Zealand Herald, Volume LXVII, Issue 20626, 26 July 1930, Page 16

SOUND FILM TAXATION.

HEAVY INCREASE PROPOSED.

EFFECT ON THEATRE COSTS

DESIRABILITY OF LOW PRICES

That the film-hire tax proposed in the Budget will mean an increase in the cost of conducting picture theatres is the opinion held by Auckland, film renters. It was proposed to take a very substantial share of what now constituted the profits of the distributing firms, one theatre manager said yesterday.

The gross rent derived from a film of average good quality might be £ISOO in a year. Income tax at company rates was now levied on 12j per cent, of this, and would amount to between £2O and £3O. Deducting the per cent, and the expenses, ilit? residue which tho Government now proposed to tax would be about £BSO. This would be taxed at tho rate of 10 per cent, if the film were British and 25 per cent, if foreign. In the latter case the film distributors would be liable for more than £2OO abovo what they were now paying in taxation. Tho fact that a duty was being levied on films must, not be lost sight of. British films were admitted freo, but those from foreign countries paid 2d a foot. On an average feature between 7000 ft. and SOOOft. in length this would amount to between £SO and £6O. As two' prints were usually imported the amount of duty would be douhlo this. The new tax would amount to several times as much as the duty now being paid. The revenue from a iarge film would be very much more than the £ISOO used as an illustration and tho amount derived from the tax would he correspondingly greater. Mr. T. A. O'Brien said that every endeavour was being made to reduco the price of admission to the theatres, in view of the economic state of the country. The proposed additional heavy taxation on the importers of films was likely to render tho achievement of this object difficult. He thought the margin of preference to British films was too great, because the makers wero unable to meet the demand. The British quota this year was 5 per cent., arid some difficulty had been experienced in filling it. On their entertainment value all the British films of a suitable typo would ha welcomed by exhibitors here.

Mr. Henry Ilayward said tho picture theatres were probably the most taxed institutions in the country. Tho various licence fees and the several forms of taxation made a total of nine or ten items. If Parliament insisted on. tho higher basis of taxation on sound-film, a legal provision should be made to prevent it being passed on to tho overburdened exhibitor, as was done now under the terms of all the American conn acts. The passing on of this tax would defeat the Government's objects, as many of the smaller theatres would be forced to close. Tho reimposition of the amusement tax on low-priced seats was deplored as a hardship on people who were ill able to afford extra expenditure and were entitled to a share of amusement. Ihe Auckland .Musicians' I nion yesterday sent a telegram to the Prime '.Minister. requesting that a rebate of the film and amusement taxes should be made in the case of theatres employing orchestras. J his would probably ensure that musicians now employed were retained, and would assuredly increase employment among professional musicians.

WHISKY BY THE " NIP."

SALE BY MEASURE LIKELY.

EFFECT OF NEW TARIFF,

The measured "nip" is likely to become a universal method in Auckland of retailing whisky and other spirits over hotel bars if negotiations among hotelkeepers, arising out of the increased tariff, are successful. Conferences are being held, at which the opinion has been expressed that the increased cost makes it impossible to continue the practice of handing over the bottle to the customer to take as large a. "nip" as he desires for 9<ii. A study of the ways of their customers has convinced some hotelkeepers that a smaller "nip" for 6d will be more popular than an increase in the present charge of 9d or the retailing of a 9d "nip."

Besides being faced with an increase in tlie tariff, Auckland hotelkeepers have also been advised by the wholesale wine and spirit merchants that the exchange costs on spirits, amounting to 3s on a case of whisky, are also to he passed on. Since Decern her, when these costs were first imposed, tho merchants have borne them. Negotiations are proceeding with a view to arriving at an agreement that the exchange should be shouldered equally by tho wholesalers and the retailers.

"FACING THE MUSIC."

AN INEVITABLE POSITION

VIEWS OF MR. G. FINN

[nv 'J ELEGR.U'H.—OWN C.ORRESTON'UF.NT. ]

WEMJNTITON. Frirlay. "Ihe view f take is that we have been living in a fooi s paradise and we now have to face the music," said .Mr. (J. l'inn, of Auckland, president of the New Zealand Manufacturers' Federation, when discussing the Budget.

"Everybody affected will squeak, hut it is better to meet ttie position now and have our finances straightened out as quickly as possible. Whether (ho taxation that the Minister has imposed is going to be equitable, 1 cannot say. 1 have not had a chance to consider it. It is rather difficult for anyone outside (he 'taxation Department to criticise fairly the thing on general lines. "1 think it is no use squeaking. You have to take the thing the same as you woul 1 if you went into a business that got behind, when you would have to make drastic cuts and changes to get matters right. It is the same with the, country,"

AX ECONOMIC PRINCIPLE.

DIRECT TAXATION APPROVED

ADVANTAGES OF THE METHOD

[IIV TRLECfTIAWI. —PRESS ASSOCIATION.] DUN EDIX, Friday.

Commenting on the Budget, Dr. A. G. I', Fisher, professor of economies in the f- iiivci...il.y of Otago, said (hero could lie li'Uc doubt that the advantages in the "quiiy and certainly of direct taxation, aml i (nfjfiiiy (,f i|io graduated income rnado I hin the mont economyu and effective method of raising revenue. It •///oi, therefore, regrettable that so mu'h of the new revenue wan lo come from increased em.lofoK dttliefl. Discussion had already i.hown how difficult it was lo determine who actually paid the lux and il was probable that the burden eventually fell <> t i people unfitted I<. undertake il. From this viewpoint the pull tax proposed for unemployment was a medieval barbarism which should have been discarded from the thought and equipment of civilised communities.