SEARCH FOR REVENUE

New Zealand Herald, Volume LXX, Issue 21404, 31 January 1933, Page 10

SEARCH FOR REVENUE

SALES TAX PROPOSAL LEVY CONSIDERED CERTAIN PROVISION FOR EXEMPTIONS [B¥ TELEGRAPH —SPECIAL REPORTER] WELLINGTON, Monday It can now be definitely asserted that one of the Government's proposals for raising a substantial part of the additional taxation of £2,400,000 estimated to be required next year will be the inipositioa of a sales tax.

The possibility of such a tax being levied has been hinted on several occasions recently. Authoritative information forthcoming to-day, however, brings the proposal into certain prospect. The rat* at which it is proposed to levy the tax has not yet been disclosed, but Iho bill will set out a list of exemptions. It is unlikely that full details of tho taxation policy will be announced until after tho two no-confidence motions before the House of Representatives have been disposed of. In any case, final decisions have not yet been reached on all tho various alternative taxation suggestions.

There was every prospoct of a sales tax being imposed a year ago and a bill on the subject was actually printed. Howover, it was later found possible to make financial arrangements which enabled the Government to refrain from saddling the taxpayers with additional burdens. On this occasion, however, the prospective deficit in the 1933-34 Budget is so great that a continuance of respite is not considered possible.