SALES TAX PLAN.

New Zealand Herald, Volume LXIX, Issue 21161, 19 April 1932, Page 11

SALES TAX PLAN.

DECISION NOT YET MADE. GOVERNMENT'S INTENTIONS. BILL UNLIKELY AT PRESENT. [BY TELEGRAPH.— SPECIAL REPORTER.] WELLINGTON, Monday. Although the appearance of the Sales TaxBill in Parliament was definitely imminent a few days ago, there now appears to be little prospei t of its introduction in the immediate future. Tho Government has never officially stated that a sales tax formed part of its revenueraising plan, but thi>r© is ample authority for the belief that legislation in that direction has been under consideration liy the Government and that a draft of the bill has been prepared. Questioned on the subject this evening, the Frime Minister, Rt. Hon. G. W. Forbes, said tho proposal was still under consideration, but ho indicated that it bad been shelved in the meantime in view of the Government's attention being preoccupied with tiio National Expenditure Adjustment Bill now before tho House of Represenlatives and the framing of legislation dealing with the strengthening of authority in time of civil commotion. None of the Government's economy legislation has beer framed with a view to winning public popularity and Mr. Forbes has frequently said that drastic proposals have been made only because tho Government believed them to be imperatively necessary. Even then, a risk was being taken, lecause only tho minimum sacrifice was being called for and the Government was actually budgeting for a deficit this year. A sales tax can be placed in the category of the most distasteful features of the Government's policy and any ether practicable way out of the difficulty should certainly be given careful thought. There is a suggestion that the Cabinet may be wavering in regard to its intentions on the sales tax proposal, but the nature \of possible alternatives is not known. It may be recalled that the Hon. W. Downie Stewart, in the Budget of 1927, made the following obsei-vation on recommendations made by the Taxation Committee of 1922:—''The suggestion was made that the possibilities of a sales and turnover tax sho.ild be considered in place of some of our present taxation, but I am satisfied that such a tax would not be as equitab e as the present tax on income. In anj case, in my opinion, such tax, being ooth on luxuries and necessities, must hit the poor, who have a smaller margin beyond the necessary expenditure, more heavily than the rich."