HIGHER TAXES

Otago Daily Times, Issue 24912, 11 May 1942, Page 4

HIGHER TAXES

DETAILS OF ADDITIONAL REVENUE ; (F.0.P.R.) WELLINGTON, May 10. The 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, Mr A. H. Nordmeyer, when moving its second reading in the House of Representatives to-day. He said that the estimated figures allowed for possible decreases in the consumption of the various goods concerned. . * '-■ ' ."'. ~ The extra duty on wines and spirits was calculated to produce an additional £120,000 in the 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 the full year, he continued. In addition, beer would pay an increased sales tax, and this was expected to give £480,000. The higher duties on tobacco and cigarettes and the sales tax on these duties should give a further £2,000,000 in the full year. . . ~,' ....,.,,,.. „.;|„,,'.'. Mr Nordmeyer, in reply to a .question.' said! Jth^t.these •.items, : :had chosen because they were luxuries. Thought had been given to imposing a straight-out luxury tax, or a turnover tax on luxuries, but it was decided instead to increase the 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. Referring to the sales tax, Mr Nordmeyer said that the estimated extra revenue after making allowance for a possible fall in sales of £3,000,000 was £3,700,000. In answer to a question about 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. J r