TO MEET DEFICIT

Taranaki Daily News, 31 January 1933, Page 9

TO MEET DEFICIT

SALES TAX PART OF PLAN PROPOSALS. OF THE CABINET DETAILS NOT AVAILABLE OTHEK MEANS OF TAXATION CAREFUL CONSIDERATION (By Wire— Parliamentary Reportdr.) , . Wellington,. Last Night. Although the possibility of the imposition of a sales tax as a means towards raising part of-the. £2,400,000 required by the Government, lias, been suggested for some time riothifig defliiite about the matter was heard until .to-day, when it was learned from an aiithoratitlve source that a sales tax is a definite part of Cabinet’s plan. It is understood that this form of taxation Will bring in a substantial part of the revenue required. The rate at which it is proposed to levy the tax has not yet been determined and it is unlikely that the full- details regarding it will be available until the adverse amendment before the House and the no-confidence motion of which the leader of the Opposition has given notice have been disposed of. Alternative methods for the raising of taxation have been put forward and will probably be considered carefully before the final decision is reached. There was a distinct prospect of a sales tax being imposed about a year ago and a Bill- was even prepared and printed, but when it was found possible to raise the money required by other means the tax was discarded. At the present time, however, the prospective gap in the Dominion’s balance-sheet is so great and the avenues of taxation are so narrowed that a sales tax appears to be inevitable. The sales tax has been applied in several countries either as a single turnover or a multiple turnover tax, and has always been responsible "‘for a‘Targe’percentage of the 3 total taxaiiph collected. The tax is resided by some authorities as one of the few equitable ’ means of raising money when income taxation has reached its workable limit.