SALES TAX BILL

Southland Times, Issue 21949, 25 February 1933, Page 9

SALES TAX BILL

A QUIET PASSAGE UPPER HOUSE DEBATE MEASURE PASSED (From Our Parliamentary Reporter.) Wellington, February 24. In marked contrast to its stormy reception in the House of Representatives, the Sales Tax Bill passed quietly through the Legislative Council this afternoon in little less than an hour and a half. . In moving the second reading the Hon Sir James Parr, Leader of the Council, said the necessity for the Bill had been widely attributed to the raising of the rate of exchange, but this was a popular misconception. The legislation would have been introduced in any case for the simple reason that the anticipated deficit was £6,100,000, apart from the added obligations of the exchange. It was a matter for congratulation, said Sir James, that the business community was co-operating in the collecting of the tax which was expected to yield £1,500,000. Many requests had been received from members urging the exemption of additional items, but that was a matter for the House of Representatives.

The Hon. Sir James Allen said the extra taxation was absolutely necessary and the method the Government had adopted was more or less an equitable one. He asked that reconsideration should be given to the clauses providing that in the case of disputes, the decision of the Minister must be accepted as final. The matter had been brought to his notice by the Associated Chambers of Commerce which had pointed out that in Australia a board of review made the final decision. He asked the Minister .of Customs to investigate the possibility of setting up a similar body in New Zealand.

The- Hon. W. H. Mclntyre disagreed that a sales tax was the most equitable method'of raising the money. It would have been better had the Government selected three or four items. He expressed regret that the timber industry had not been exempt from the tax. A profitable source of revenue would have been a tax on crude oil. The Hon. W. Snodgrass said that business people were unanimous that it was unfortunate the Government had resorted to a new form of taxation. He himself would have preferred to have seen a 5 per cent primage duty with an additional 5 per cent on foreign goods. The Hon. C. J. Carrington contended that the Bill was necessary in the interests of the country. The Hon. R. Masters, Minister of Industries and Commerce, said that in the main it was felt that the tax. was a fair one in view of all the circumstances.

It was gratifying to know that the merchants and others had offered to do everything possible to assist in the smooth working of the legislation. He considered that the Government had been very generous with exemptions and that due consideration had been given to the working people. The point raised by Sir James Allen was worthy of consideration and would be referred to the Minister of Customs, said Mr Masters. He confessed that he had not been aware that a Board of Review existed in Australia. The Commonwealth people had implicit faith in the Controller of Customs, Dr Craig, who could be trusted to exercise sound judgment. In replying to points raised by the various speakers, the Minister said that if the Government exempted timber it would have been compelled to exempt cement, bricks, iron and other building material. He understood that a tax of 2d a gallon on crude oil would involve .the shipping companies in an expenditure of from £lBO to £2OO a day. A 5 per cent primage duty would impose a great hardship on the working people. The Committee stages occupied a few minutes only, the Bill receiving its third reading on the voices. The Council adjourned until Tuesday next.