CUP OF. TEA.

Pahiatua Herald, Volume XXVI, Issue 2878, 2 December 1921, Page 5

CUP OF. TEA.

TAX MUST BE RETAINED. Electric Tdeeraph—Press Associsttoi Wellington, December 1. During the discussion of the Customs BiM to-night, Air T. M. AA il-fo-rd moved that tea be placed on the free list. He said he did not propose to offer any factious opposition to tlie tariff, but there were several items to which the Opposition took exception, and they proposed to move amendments and to call for a division. That was tlie constitutional method!, and they proposed to follow it. He understood the revenue raised from teas was £120,000, but lie could see several avenues by which that money could be raised, and so he moved tli.e amendment. Air Massey pointed out that this duty on tea was not new. It was put on by the National Government, and had been on for years. It was put on when they wanted money, and they wanted money more than ever now. In view -of the financial poisi-• tion of the country, he strongly advised the House to retain the duty. Air H. Holland objected, to the tea tax, because it was a specific tax. The poor man liad to pay as much on his cheap tea as the rich man paid on his expensive tea. It was a clear, definite increase in the cost of living to the wage-worker. The Premier said lie wanted money. The Labour Party was prepared to show him how he could get tlie money if lie would only take their advice.

Mr Harris suggested an ad val l orem tax on tea. of 10 per cent. Brij tisli and 15 pet- cent, other than British. Under that system. the revenue would probably remain about the same, and the* taxpayer would pay in proportion to the class of tea they used. Air H. Atmore said it was because . the Government had made a concession to the large landowners on tn*> land tax that their position was so weak in imposing this tax. He, suggested that preference be given to British x-ea. If that was not necessary, then all tea should come in. free. Air XV. A. Veitch said the tax on tea. was unwarranted, and caused a great deal of hardship on a great many people. The Hon. C. -I Parr said the alternative to a tea tax was a reduction of tho exemption on the income itax. If the present exemption of £3OO was retained, it was not unfair to ask those earning less than £3OO per annum to contribute a small sum to the tax USOU of the country. After all, the i.- : only amounted to about a penny - r day lor a family of seven people. Air Massey explained that, as .Minister of Finance, he was being constantly a>ke«l for large sums for public purposes and superannuation funds, and la* would like to do more in this direction. But until the finances returned to rmrma.L this could 'not he done. He must have money* which tliis duly would give him. Air G. Mitchell admitted that the Premier must have money, but this was the wrong way to get it. The tax on silks should have been retained, and the tax on tea remitted!. Alter a number of speakers had suggested various ways in which the money required could he made up, a division was taken on .Mr Wilford’s amendment, which was lost by 37 votes to 28.