HIGH COSTS OF CLOTHING

Press, Volume LXXXII, Issue 24905, 19 June 1946, Page 5

HIGH COSTS OF CLOTHING

RETAILERS BLAME SALES TAX Concern at the continuance of the sales tax which, combined with other taxes was largely responsible (it was held), for the high price of goods to the buying public, was expressed at a recent meeting of the advisory board of the New Zealand Retailers’ Federation. The public complained about high prices, but very few knew, or were able to visualise, how prices were built up from original costs. It was generally assumed that the retailers made extremely large profits, particularly if the income taxation was not shown as a deduction. What was not realised was the pyramid effect of taxation, customs duty, primage, sales tax, and income tax. The tax on children’s clothing, particularly, was one of those which the Retailers' Federation was most anxious to see reduced. For many years past the federation had pressed for correction of sales tax anomalies on articles such as diaper in the piece, baby’s bonnets, and perambulators; but without avail. Typical cases of direct indents by retailers from overseas, covering a range of imported garments and materials and showing the share taken by local taxation to be many times the surplus received by the retailer after he had paid expenses of handling and income tax, were as follows, the respective figures quoted being the retail price, taxation, and retailers’ surplus after paying taxes:—women’s lisle hose, 10s 3d; 3s 4Jd; 3d. Women’s bloomers, 6s 9d; Is 8d; 2|d. Women’s knickers (celanese), 10s 9d; 2s lOd; 4Ad. Women’s vests, 4s 8d; Is 3d; 2d. Women’s gloves, 30s; 9s 4d; Is Bd. Infants’ woollen frock, 255; 9s Id, lid. Infants’ socks, 3s 3d; 10|d; Id. Infants’ pantee, 5s 9d; Is 6d; 2d. Infants’ cardigan, 12s 3d; 4s lid; 6d. Baby’s shawl, 445; 16s; Is Bd. Baby’s diaper (yard), 2s 7d: sfd; Id. Baby’s winceyette