TAX INCREASES

New Zealand Herald, Volume 79, Issue 24270, 11 May 1942, Page 7

TAX INCREASES

£1,405,000 FROM BEER SALES TAX £3,700,000 MORE TOBACCO'S SHARE £2,000,000 (S.R.) WELLINGTON, Saturday Additional revenue expected to be received as a result of the operation of the Customs Acts Amendment Bill was estimated by the Minister in charge of the measure, the Hon. A. H. Nordmeyer. when moving its second reading in the House to-day. He said that the estimated figuras allowed for possible de creases in the consumption of the various goods concerned. The extra duty on wines and spirits was calculated to produce an additional £120,000, in a full year, Mr. Nordmeyer said. Replying to a question, he said that there would possibly be other regulations about the hotel trade, but they might not come before the House. Beer duty was expected to produce an extra £925,000 in a full year. In addition, beer would pay the increased sales tax, and this was expected to give £480,000. Higher duties on tobacco and cigarettes and sales tax on these duties should give a further £2,000,000 in a full year. These items had been chosen because they were luxuries. Thought had been given to imposing a straightout luxury tax on a turnover tax on luxuries, but instead it was decided to increase sales tax by 10 per cent and to exempt some important household lines. There was power in the bill to add other items to the exempted list, and certain representations had already been made. The estimated extra revenue from sales tax, after making allowance for a possible fall in sales of £3,000,000, was £3.700,000. In answer to a question about the higher excess profits tax and its effect, Mr. Nordmeyer explained that it was expected to produce about the same amount as last year, but some people would pay a little more than last year and others a little less. The bill was put through its remaining stages and passed without further discussion.

MINISTERS OVERSEAS DEFENCE IN THE HOUSE GOOD WORK BEING DONE (S.R.) WELLINGTON, Saturday The work of the .Minister of Finance, the Hon. W. Nash, and the Minister of Lands, the Hon. F. Langstone, as New Zealand representatives abroad was defended by the Prime Minister, the lit. Hon. P. Fraser, when replying to the financial debate in the House to-day. He said both had done splendid work for the Dominion and New Zealand was, indeed, fortunate in its two representatives in the North American continent. Washington was one of the most important spots on earth to-day so far as New Zealand was concerned, said Mr. Fraser. Mr. Nash had been selected for the position of New Zealand Minister there because of his grasp of the situation in the Pacific. Not only had he lived up to their expectations, but he had exceeded them already. Mr. Fraser said that when the Prime Minister of Canada had met him in London one of the first things he had asked was that New Zealand should implement the exchange of representatives by appointing a representative to Ottawa. Mr. Langstone was eminently fitted for the position. CRITICISM OF COUNCIL MR. BLOODWORTH REPLIES (P.A.) . WELLINGTON, Saturday When bills were being; discussed by the Legislative Council, a reply to what he described as rather pointed attacks on the honour and dignity of the Legislative Council and members was made to-day by the Hon. T. Bloodworth, who said the Council was part of the constitution of New Zealand, and it was grossly unfair that members of another place should attack its members, who could; not extend their own period of appointment as members of the other place could. It would be* unwise at present to amend the constitution as suggested. No place comparable in power and prestige with New Zealand had less than two chambers. Members of the Legislative Council in many instances were more experienced than the members of another place, and there would be more need than ever for a second chamber to deal with post-war problems. Mr. Bloodworth suggested that the Government should consider introducing some types of bills to the Council earlier in the sessions than was the present practice. The bills could then be sent to the other place. SON SHOOTS FATHER RESULT OF A JOKE (0.C.) WHANGAREI, Sunday A verdict that Mr. Steven Urlich. a Dalmatian, of Waihopo, died on February 27 from gunshot wounds, the shot being fired by his son, Ivan, was returned at an inquest held at Houhora. The shooting was the tragic result of a joke played by the father on a son, aged 16, the son not recognising the father, and the father being ignorant of the fact that his son possessed a loaded shotgun. Srecko Urlich said: "I found dad standing in the paddock. He said, 'Srecko. I am shot. It wasn't Ivan's fault. It was mine. 1 " His father said he had been walking toward Ivan in a crouching attitude to frighten him. In a dving deposition, Mr. Urlich said: "I have fun with boy. I should answer. He not know it me. Poor boy. Not his fault. All mine."

NAVAL CASUALTY (P.A.) WELLINGTON, Saturday The following naval casualty was announced to-day:— Peppered, Jack Radford (Sub-Lieutenant), died as result of injuries received in aircraft accident—Mrs. E. Peppereil, Eltham (mother).