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Star (Christchurch), Volume XLIV, Issue 694, 22 February 1933, Page 11

END OF STONEWALL.

Sales Tax Bill Clauses Put Through. LITTLE TROUBLE (’’ Star ” Parliamentary Reporter.) WELLINGTON, February 22. There was a breakdown in Labour s stonewall on the Sales Tax Bill in the House last night, when the clauses which remained to be put through the committee stages were dealt with either by passing or by Mr Coates agreeing to have them held over for redrafting. The clauses held over total seven, and contain most of the vital principles of the Bill, including the actual imposition and collection of tax, the method of determining and defining sales value, the effect of the tax on agreements for sale and purchase and the conduct of proceedings in an arrest without warrant. These, together with the schedule containing the list of exemptions, will be brought down tomorrow afternoon. When the measure was taken in committee of the House this afternoon, the Opposition challenged unsuccessfully the Prime Minister’s motion for urgency, which involved completing the proceedings before the sitting ended. As matters developed, however, the Government was caught unprepared, for when all the clauses were adopted, excepting several important ones which had been held over for amendment, the necessary Governor-General’s message was not available, and the House adjourned. Actually there were 391 speeches during the committee stages. The Penal Clauses. The committee discussion opened on the penal clauses, Air Coates countering Opposition criticism of their drastic character by reminding the House that they had been taken from the Customs Act, which had been operating smoothly for many years without inflicting injustice on anyone. Labour speakers who showed a desire to continue this discussion were firmly reminded by the chairman when a familiar argument was presented, “ I am afraid that has been said before. These points have been thoroughly discussed.” Even when a member protested that he had never spoken on those lines he was ruled out. Air Richards (RoskilD took the Chairman’s count cheerfully. “ I don’t know who said it,” he remarked, “ but it was a very good argument, and I congratulate him.” Tactics Varied. The fighting tactics also showed a variation, for some clauses were permitted to pass without a division. Whenever there was a challenge the Government enjoyed a total varying from forty to forty-two, while the Opposition mustered from twenty-two to twenty-six votes.

Nine clauses were adopted in three hours, the final clause empowering the issue of regulations by Order-in-Council being reached shortly after ten o’clock. Air Coates moved to report progress. By this time the leader of the Opposition had returned and he asked whether the sales tax would be taken next day. Air Coates replied in the affirmative. He had hoped, he said, to introduce certain amendments by GovernorGeneral’s message, but this would not be available until Wednesday, when it was proposed to deal with them and the schedule of exemptions. The House then adjourned. The Exemptions. (" Star ” Parliamentary Reporter.) WELLINGTON, February 21. The contents of the amended list of exemptions under the Sales Tax Bill are being kept a very close secret in Alinisterial circles, but it was learned last night that in addition to fresh items being introduced into the list some of those at present included will be deleted. These, it is understood, are not of wide-reaching effect, and their deletion will make the work of manufacturers and importers easier, for their removal will avoid difficulties which at present exist in the way of computing tax. The question as to whether water supplied by local bodies for sale came under the provisions of the Bill has been determined. It is held that the definition applies to this commodity, but the difficult)'- is being overcome bv including water in the new list of exemptions. Thus the Auckland City Council’s supply will be excluded from payment of the impost. Tho Minimum Tax. Information as to the minimum amount which would be collected under the Sales Tax Bill was sought in the House to-night. Air Barnard (Napier) asked whether the Government had yet come to any decision on the matter and whether it would follow tjje practice adopted in connection with Customs duties of making the minimum amount sixpence. Air Coates said the matter had not been decided, but it was possible that the practice in regard to Customs taxation would be followed. It was necessary to have power to remit small amounts. Air Nash (Hutt) : This had nothing to do with new taxes. Air Coates: No.