FILM HIRE TAX.

New Zealand Herald, Volume LXVII, Issue 20646, 19 August 1930, Page 13

FILM HIRE TAX.

SERIOUS EFFECT ALLEGED. BURDEN ON PICTURE HOUSES. AMUSEMENT CHARGES OPPOSED. [NY TELKGIIAI'II. —SPECIAL ItEPORTER.] W F,LLIN (i TO N. Monday. "The serious effects likely to follow the imposition of the lilni hire tax proposed in the Finance Rill were emphasised by tho Leader of the Opposition, the Rt. Hon. J. G. Coatcs, when speaking in the House of Representatives to-day. In explaining the bill Ihe Prime Minister, the Hon. G. W. Forbes, said tho trouble with the system <>f levying a duty on film footage was that it was difficult to assess tho value of a film when it was brought into tlio country. Whereas ono film might return a very small profit, another might prove extremely profitable upon being released, but they both had to pay the same amount of duty if they were similar in length. It was thus felt that it would be quite inequitable to increase the customs duty 011 films as a means of securing additional revenue, and it was decided to tax films 011 the profits they returned through exhibition. Taxation would bo levied 011 the net receipts and these would be-com-puted after tho total expenses of the handling of the film, customs duties and 12£ per cent, of the gross receipts derived had been subtracted from the aggregate returns. Mr. A. Harris (Reform —Waitemata) : Customs duties will still obtain ? More Equitable Charge. Tlio Prime Minister: Yes, but instead of trying to raise additional revenue from customs duties it was felt to be more equitable to make a duly upon revenue. He added that the new duty on foreign sound films would be 25 per cent, and that on British productions would be 10 per cent. The amusement tax and the film hire tax proposals were bolli criticised by the Leader of the Opposition, the Rt. Hon* J. G. Coatcs, who followed the Prime Minister. Mr. Coatcs believed the exemption fioin amusement tax should include tiie Is 6d tickets. It had to be remembered that the change from the silent to the sound films bad been a very expensive process and many picture house people were in a very precarious position. If anything were done at the present juncture which would have the effect of interfering with takings it was very hard to say where the trouble would end. Tho part of the bill which dealt with cinematograph films meant ruination to every picture company formed in New Zealand with local capital. It was estimated that £40,000 would be raised by tho film hire tax, but Mr. Coates said 110 was informed that £120.000 would be nearer tho mark. Effect of Customs Duty. He had also been informed that if the bill were passed it would mean the end of British films in this country. It was also very drastic to take 25 per cent, of the total earnings of a foreign picture. Mr. Forbes: Most of it goes to America. Mr. Coates: How can the honourable gentleman tell that? That is just an assumption. Are we to be content to have just the "dud" pictures? We should see that we get the best quality films. Mr. W. J. Poison (Independent—Stratford) : -They have the same tax in Australia. Mr. Coates denied that and added that the effect of the proposal would be that two companies would " go out."