PAPER MILLS

Bay of Plenty Beacon, Volume 10, Issue 52, 20 November 1946, Page 5

PAPER MILLS

PROFITS FOR STATE

INCOME TAX DEMANDS

Reference to the high level of taxation imposed on Whakatane Paper Mills, Limited, was made by the chairman, Mr G. H. Mackley, at the annual meeting of New Zealand shareholders in Wellington. That the company should be called on to pay such a high proportion as 60 per cent, of its profits to the State by way of first charge in taxation without regard to what was left for shareholders of the company was not reasonable, he said. It should surely not be constructed as being helpful to the encouragement and expansion of a young and economic industry such as Whakatane Paper Mills undoubtedly was. Before the slight reduction in taxation afforded by • the Budget, totalling approximately 2s in the pound, the company contributed 70 per cent, of its profits to the State and was still compelled to continue to pay 60 per cent, of its profits by way of taxation. During the war years the company contributed to the State over £142,000 in taxation. The company had been a good milch cow so far as the State exchequer v/as concerned, but it had not yet been profitable to its shareholders. Now that the war v/as over, the directors were going to insist on justice for their shareholders through the price structure which ever since production commenced had been an obstacle to a fair and adequate return on the capital in-, vested. The directors were hopeful they might be successful in their efforts to achieve a result to which they had all looked forward for SO long.