TO BE TAXED?

Waipukurau Press, Volume XXVIII, Issue 63, 7 March 1933, Page 8

TO BE TAXED?

TRADING VENTURES OF LOCAL BODIES There is reason to believe that the Government contemplates abolishing the exemption from taxation which is now granted to municipal trading concerns, and a clause to this effect may be included in the Finance Bill No. 4, which is probably to be introduced into the House of Representatives to-day. It is understood that Cabinet has not yet made a final decision on the matter. A brief discussion on the taxation of municipal trading companies arose prematurely in the House yesterday afternoon, when Mr. W. E. Parry (Lab., Auckland Central), misunderstanding the provisions of Finance Bill No. 3, which gives the Government power to penalise bondholders who do not accept the conversion, protested against the imposition of such taxation. “I assume from the title of this Bill that it is proposed to tax municipal and State trading concerns,” he said. ‘‘lf that is so it seems to me that the Government is taking money out of one pocket ami nutting it into another.” ‘‘l believe that municipal trading concerns should contribute in the same way as other concerns," replied the Minister of Finance. Rt. Hon. J. G. Coates, amid a conflicting chorus of "Hear, hear" and expressions of dissent. Among those who dissented from the Statement was Air D. G. Sullivan (Lab., Avon), who, as Mayor of Christchurch, was evidently concerned about the effect of such a policy on the municipal department. Mr F. Langstone (Lab.. Waimarino) pointed out that if the Government imposed taxation on municipal trading companies it would be called upon to pay rates in respect of the properties it occupied in the different municipalities. He doubted whether the extra taxation realised would meet this charge. “I am very glad the Minister is going to tax municipal trading concerns," remarked Mr H. S. S. Kyle (Govt., Riccarton). “I think the Government ought to do that and be prepared to pay rates on all Government properties." Air Coates: My reference to trading departments paying income tax tid'd no reference to rating. * That has been carefully avoided and is not contemplated. Air Sullivan: But the two things would go together. The attention of members was then drawn to the true nature of the Bill, and the discussion lapsed.