PARLIAMENT

New Zealand Herald, Volume LXX, Issue 21418, 16 February 1933, Page 11

PARLIAMENT

PROGRESS OF DEBATE OPINIONS ON SALES TAX ATTITUDE OF LABOUR MODERATE CRITICISM FEW COALITION SPEECHES [BY TELEGRAPH—SPECIAL REPORTER] WELLINGTON, Wednesday A remarkably philosophic reception is feeing accorded the Sales Tax Bill, tfie iecond reading debate On which was continued in the House to-day. It was at the outset that the measure would be subjected to bitter opposition, but Labour speeches, although condemnatory of the principle of the sales tax, have been pitched in a moderate key. It appeared at one stage that Government members were under instructions not to prolong the debate, for of the first six spekhes delivered to-day, five came from the Labour benches and one from an Independent member. However, when it appeared likely that the debate would lapse for want of speakers, several Government members filled the breach. Seventeen speeches were heard, 10 being from members and five from the Government benches. Most interest centred in the speech by the Hon. W. Downie Stewart, ex-Min-ister of Finance. He indicated that he would support the bill, for he conceded that the sales tax, or some similar alternative, was in his own opinion unavoidable. His point of difference with the Government was that the imposition of tho tax, without recourse to the high exchange policy, would have brought the prospective Budgetary deficit within manageable limits. It did noV please Labour members to hear Mr. Stewart offqr a partial defence of the Government policy and they adopted a line which had been followed in the debate on the Banks Indemnity Bill of .attempting to castigate Mr. Stewart. No doubt the Labour Party is disappointed at finding that' Mr. Stewart has nofc allowed his difference with the Government over the high exchange decision to drive him permanently away from the Coalition. The debate was adjourned at midnight. The livelier tone evident in the closing stages indicates tbdt there is a prospect Df the debate occupying most of tomorrow's sitting, in spite of the slackness of interest throughout the greater part of to-day's proceedings. So little urgent work remains for Parliament to transact that opinions are beginning to be expressed that there is no need to prolong the session past the end of next week. The debate on the second reading of the Sales Tax Bill showed signs of petering out on several occasions today. It is unlikely that the. Committee Etages will be begun until next week. The annual Taxing Bill, giving effect to proposed adjustments in income tax not yet- disclosed, is expected to appear later in the week, but no precise date can be mentioned, as the bill is still in course of preparation. A Customs Bill is also required to give effect to the resolutions already passed, and an Imprest Supply Bill will also be needed to''give Supply to the Government until Parliament meets again, probably in August. PAYING INCOME TAX POSITION OF 'FARMERS p EQUAL FOOTING URGED [BY TELEGRAPH —SPECIAL REPORTER] WELLINGTON, Wednesday A question has been tabled in the) House by Mr. W. P. Endean (Government—Parnell)' asking the Government to introduce legislation to place farmers and other people in New Zealand on an equal footing with regard to income tax. EXEMPTIONS FROM TAX WOOL FOR RECONDITIONING SPECIAL CLASSES FREE j [BY TELEGRAPH —PRESS ASSOCIATION J WELLINGTON, Wednesday Questions regarding exemptions from tho gales tax were asked in the House of Representatives to-day. The Hon. A. D. McLeod (Government— Wairarapa) asked whether it was the intention of the Sales Tax Bill that the impost should be paid on the re-sale of purchasesooff f wool for reconditioning or scouring. The Minister of Finance, Mr. Coatcs, said that wool was at present exempted from the tax only if it was produced by a farmer and sold by him, but it was proposed to grant special exemption with respect to greasy, sliped, washed, scoured »nd carbonised wool. Mr. McLeod also asked whether those effecting repairs, say, to a motor-car and finding the necessary materials, were supposed to collect the tax on the material and work. Mr. Coates said it was not intended that persons doing only bona fide repair work should be licensed as manufacturing retailers. Hence the sales tax, other than that leviable upon materials used in such work, would not be chargeable upon bona fide repairs. HIGHER PRIMAGE DUTY SALES TAX ALTERNATIVE / [BY TELEGRAPH —SPECIAL REPORTER] WELLINGTON, Wednesday The view that an increased primage duty on imports and an excise tax on locally manufactured goods, other than foodstuffs, was preferable to the sales tax, was expressed by Mr. A. Harris (Government—Waitemata) when speaking during the second reading debate on the Bales Tax Bill in the House of Representatives this evening. He said the sales tax would be costly to collect and easy to evade. It was a harassing and burdensome form of taxation. and the staffs of the Customs Department and merchants would have to be increased to deal with it. Air. Harris said that while he objected to a primage .tax on principle, he could not help thinking that it would be more Satisfactory than the sales tax. Further, it would be - collected from much the same source, but would be infinitely less costly and harassing than the sales tax. He suggested as an alternative to the sales tax that a primage duty of per cent he imposed on all imports, whether they be on the free list or not, and an excise primage duty of 2£ per cent on all locally manufactured goods, with the exception of foodstuffs. If his plan were adopted, the two duties would produce £1,650,000, or £150,000 more the sum the Minister of Finance expected to obtain from the sales tax. All the necessity of unravelling anomalies and ambiguities in the bill j Would then be avoided.