REVENUE FIGURES

Wanganui Chronicle, Volume 86, Issue 109, 12 May 1942, Page 3

REVENUE FIGURES

MINISTER GIVES ESTIMATE OF EXPECTED RECEIPTS RESULT OF INCREASED DUTIES Additional revenue to be received as a result of the operation of the Customs Acts Amendment Bill was estimated by the Minister in charge of the measure, Mr. Nordmeyer, when moving its second reading in the House of Representatives yesterday. He said that the estimated figures allowed for possible decreases in the consumption of the goods concerned. The extra duty on wines and spirits was calculated to produce an additional £120,000 in a full year, Mr. Nordmeyer said. Replying to a question, he said that there would possibly be other regulations about the hotel trade, but they might not come before the House. Ecer duty was expected to produce an extra £925,000 in a full year, he continued. In addition, beer would pay the increased sales tax. and this was expected to give £480,000. Highei duties on tobacco and cigarettes and sales tax on these duties, should give a further £2,000,000 in a full year. Mr. Nordmeyer, in reply to a question, said these items had been chosen because they were luxuries. Thought had been given to imposing a straigntout luxury tax, or a turn-over tax on luxuries, but instead it was decided to increase sales tax by 10 per cent, and lo exempt some important household lines. There was power in the Bill to add other items to the exempted list, and certain representations had already been made. Referring lo sales tax. Mr. Nordmeyer said the estinlated extra revenue. after making allowance for a possible fall in sales of £3.000,000, was £3,700,000. In answer to a question about the higher excess profits tax and its effect? Mr. Nordmeyer explained that it was expected to produce about the same amount as last year, but some people would pay a little more than last year and others a little less. Th* 1 Bill was put through its remaining stages and passed, without further discussion.