SALES TAX

New Zealand Herald, Volume 79, Issue 24270, 11 May 1942, Page 2

SALES TAX

Sir, —In fairness to the small business man it should be stated that the original 10 per cent sales tax imposed was borne largely on many lines of goods by the retailer. Take, for instance, fines of school stationery, confectionery, and standard lines sold at fixed prices. With very little assistance from the wholesaler, the 10 per cent sales tax on these lines was carried.by the retailer, thereby reducing his return by 10 per cent. * Popular lines sold at fixed prices comprise a large portion of the turnover in many small business concerns, and the return for long hours, labour and capital iravolved gives a meagre return compared with the short hours_ and high wages gained by employees in so trianv other avenues of work. - Now with a further 10 per cent tax, making 20 per cent, the position must be met and consideration in price fixation for this and also for the previous tax given to the retailer. Business will become increasingly difficult with shortage of stocks, rationing, price fixation and labour problems, but all that is asked for is that in fh» readjustment' of prices caused ( by increased taxes the small retailer be granted a fair return for capital and labour employed. Retaheb.