NEW TAXATION.

Taranaki Herald, Volume LXIII, Issue 144776, 4 September 1915, Page 3

NEW TAXATION.

DISCUSSED BY CHAMBER OF COMMERCE. ' ' PROTEST' AGAINST ‘ PETROL TAX. A short discussioh took place at the meeting of the Taranaki Chamber of Commerce on Friday night with reference to the new taxes, and particularly the increase duty on motor-spirits and kerosene. Mii, C. H. Burgess, in protesting against the duty on kerosene, said he thought the Government might have found something better to tax. It did not matter to the wholesale men, as they could get it out' of the whereas if the duty had only been one per cent., the wholesale people would have been unable to do this. He objected to the statements made that the public ’ were ' being exploited. The Vacuum Oil Company had told Its clients throughout the Dominion that it was prepared to dispose of its stock of kerosene at the old rate, and this was being done. The public would have the benefit of the stocks of kerosene by purchasing at the old rate.. Complications would arise next week, however, when a steamer would reach New Zealand with a large -cargo of kerosene, which would have to carry the new duty. This new stock would be on the market with the .old stock, and merchants would ho compelled to sell at the old rate until it was all sold out.

Mr. Newton King pointed out that benzine and kerosene were used in great quantities by the faimers, and they would keenly feel the increased cost. A few years ago it would not hare affected the farmers so much, as there were onjy a few machines on farms, but now there were hundreds of milking machines coming in every day. He considered 2s 8d per case on benzine a tremendous tax. .The legislators in their wisdom had decided on this, but bo could not understand’why a tax bad not been put on cigarettes—on luxuries. He was a cigarette smoker himself, but cigarettes were luxuries, while kerosene was a necessity. He also thought there should be a heavier tax on whisky—perhaps 50 per cent. It was the small farmer who would feel the duty on kerosene and benzine, especially the latter, as he had machines which had to be fed with it. - Mr. F. S. Johns declared that the Government had deliberately set out to exploit certain classes of the’community, and this was not justifiable in these times of stress and war, where every class should carry its quota of the burden. The Government had certainty set out to exploit" the merchants, who could not pass it on, because there was a stiff fine for doing so. It was not the farmer who was making vast sums of money who would feel the duty, but the small farmer—the labouring farmer. The men in the country had to use kerosene for lighting purposes, whereas the working men m the towns would not be affected, as they had the benefit of electric light. Mr, King said that undoubtedly the farmers Vere badly hit. He emphasised the fact that many were forced to install machines because their sons had gone to the war, and now he was penalised because his sons wore fighting and dying for us. Mr. Paten asked what it "would be proposed to tax in place of kerosene-or benzine. Mr. King: There are thousands of things. Tax the luxuries. Mr. Johns suggested a tax onaigax, which would touch everyone, and would be the easiest to collect. A email tax on sugar would produce a quarter of a million sterling. ' Mr. S. W. Shaw said he did not agree with Mr. Johns’ suggestion. . The cost of living had gone up a great deal, and wages had not advanced in proportion. , An increase in the price of sugar, would touch the working man. There was a certain proportion of the working class who were not as thrifty as they might be—they never would be 1 . They were not making any profit from the war. The producer was the man reaping the benefits, and he was the man who should pay. An export tax would catch- the men reaping the profits—the men exporting the butter, for instance.

Mr. King referred to the taxation on land, which he thought was very peculiar. The idea was to get at the people who were making money, but the proposed taxes enabled many people who were making money to avoid ' taxation, and not pay anything. The lessor of a farm was caught "in two ways, and had to pay double, whereas the lessee, who was receiving all the profits, got oft without paying anything. There was ho tax which would catch everyone, but he thought an export tax the reasonable tax. 1 . , ,

It was resolved : “That in the opinion if this Chamber no duty should he imposed upon motor-spirits and kerosene.” It was decided to send copies of the resolution to the Prime Minister, the Minister of Finance, Mr. H. Otey, M.P., and the executive of the Now Zealand Chambers of Commerce.