A DRASTIC MEASURE

Taranaki Daily News, 17 July 1930, Page 13

A DRASTIC MEASURE

AUSTRALIA’S TAX ON SALES.

EVERYONE MUST SAVE A LITTLE

A sales tax of 2J per cent, is to be imposed in Australia as a means of making good the shortage of Customs and excise revenue, and ia expected to produce £5,000,000. Some comment on the position was made by a Christchurch business man.

“It is a drastic measure,” he eaid, “which will mean that everyone will have to save a little more. It is a bold action on the part of the Prime Minis- . ter (Air. J. H. Scullin) to clean things up as soon as possible.” • The tax, he said, would mean 2| per cent, on turnover on all sales, with the exception of those primary products. mentioned in the cable. The basis of 3?** the tax would be similar to that of Canada. This impost on everything i sold meant passing the country’s debt on to the people, and would be assessed probably at the end of each year for the balance-sheets of the various ; companies and other concerns. It was another source of revenue,'and it meant that everyone would have a little less to spend. “There is not the drastic necessity for such a step in New Zealand,” he said. “It would be a brave Government that ■ would put it on here. None of the present parties, I think, would dream of imposing it.”

He we.nt on to instance the case of the petrol tax to show how imposts bn one particular thing coulu raise such a large amount. “It would be like the Saturday half-holiday for a start,” he said. “When that was decided on, shopkeepers and others said they could not carry on under such conditions. What they feared -never happened, however, and it will ue the same in Australia in this case. The actual practice may not be such a hardship as one would imagine.”