RELIEF SOUGHT

New Zealand Herald, Volume LXXIII, Issue 22349, 21 February 1936, Page 20

RELIEF SOUGHT

SALES TAX BURDEN CAMPAIGN IN AUSTRALIA PROGRESSIVE REDUCTION PLAN [from our own correspondent] MELBOURNE, Feb. 12 As Australia is credited with inspiring the imposition of the sales tax as an emergency revenue-raiser in New Zealand, there should bo interest in the Dominion in a vigorous and organised campaign, emanating from Melbourne, to convince the Federal Government that t tho 'sales tax should be reduced and ultimately abolished. Taxpayers are articulate in Australia in a way not apparent in New Zealand. The reason is. supplied by the activity of taxpaj r ers' associations, on which are represented all substantial business interests.

Tho initiative in tho campaign against the sales tax, however, is being taken >by. tho Melbourne Chamber, of Commerce, "tax less and spend less" is the watchword of a movement which seeks taxation relief generally, but is specially concerned with the sales tax. At a meeting a few days ago Melbourne business men decided to arrange for a deputation to wait on tho Prime Minister, Mr. Lyons, late this month, on the eve of the re-assembly of Parliament, to urge that effect should be given to that watchword. Defiping the view of the deputation on the sales tax, the president of tho Chamber of Commerce, Mr. A. W. I'elph, who , will lead .the "tax relief expedition" to Canberra, said: "There is no form of taxation so obnoxious or one which causes so much resentment. Recent concessions, far from improving the position, have definitely increased tho irritation and annoyance felt by traders. Exemptions are ot benefit only to the few, and undoubtedly add to the difficulties and labour of collection. Since it is realised that total abolition at present ig out or the question, a progressive percentage* reduction will- be sought or at least 1 per cent annually in the rate ot the tax. Even a fractional reduction would be more acceptable than further exemptions." „ ~ , . One important body, the Victorian Chamber of Manufactures, however, will not take part in the campaign against tho sales tax. The president, Mr. W. C. F. Thomas, said: "It is too much to expect the Federal Government, with a wave of the band, to wipe out the huge revenue which it derives from the sales tax. It is not the tax, but the incidence of the tax, which is the source of the trouble.