THE SALES TAX

Southland Times, Issue 22157, 27 October 1933, Page 8

THE SALES TAX

OBJECTIONABLE TO EMPLOYERS. GOVERNMENT EXPENDITURE. “While the national income of New Zealand is estimated to have fallen from £150,000,000 to approximately £80,000,000 the State expenditure for the last financial year was £22,528,379 as compared with £24,708,042 for the year 1930-31, a reduction of £2,179,663, or 8.8 per cent.,” states the annual report of the New Zealand Employers’ Federation. “This reduction is satisfactory so far as it goes, but obviously the present scale of expenditure cannot be maintained out of our reduced income without requiring an altogether disproportionate sacrifice in other directions. To maintain this expenditure a new form of taxation, the sales tax, has been imposed upon us which has many features which make it particularly objectionable to employers. Apart from ordinary Government expenditure included in these figures the country is finding an additional £4,000,000 per annum by special taxation for the relief of unemployment. Including the unemployment relief funds the industries of New Zealand are being taxed more heavily than ever before, and it is a question how long the burden can be carried. Obviously too great a drain upon the production of industry for Government expenditure of a non-productive character must react upon industry and employment.”