Review Of Tax System

Press, Volume CV, Issue 30962, 19 January 1966, Page 3

Review Of Tax System

f.V.Z. Press Association) WELLINGTON. January 18. The demands of 1 business interests for ; a review of the tax sys- • tern could be inter- • preted as indicating a ■ desire to transfer some ■ of their present share of taxation to other ■ quarters, said the ! president of the Public > Service Association, ; Mr W. E. B. Tucker, \ today. I “The Chambers of Com- ■ merce and the Constitutional > Society have been doing a lot > of talking about the need for - a review of the taxation sys--1 tern and this seems to have made some impression on the

Leader of the Opposition, Mr Kirk, and the Minister of Finance, Mr Lake. “Business interests appear to favour changes in the present taxation provisions. They make no real attempt to suggest lines along which Government expenditure can be curtailed. They appear to appreciate that almost all Government expenditure is essential, and that there could even be grounds for further expenditure under some headings. Their demands for a review of the taxation system can. accordingly, be interpreted as indicating desire on [the part of the business interests to transfer some pori tion of their present share of taxation to other quarters," Mr Tucker said. Desirable Changes “The Public Service Assoi ciation is at present engaged on a review of taxation mat-

ters with a view to advocating desirable changes. This study is as yet by no means complete, but our investigations to date would indicate that proportionately the existing tax rates fall much more oppressively on wage and salary earners than on any other section of the community.

"The existing taxation system, as adapted from time to time in recent years, already contains a multiplicity of allowances and other concessions to business and property-owning interests, all of which can be advantageously used to lessen the amount of tax payable. “Unfair Share” “Wage and salary earners should be alert to the implications of publicity emanating from business and related interests. The Public Service Association wrnuld join with all other employee organisations in not only opposing moves to increase the present burden of wage and salary earners, but in taking positive steps to lighten the apparently already unfair share being carried by this, the largest section of the New Zealand population. “The association will certainly be vitally concerned in any review that might be undertaken of the taxation system, large-scale or otherwise. Meantime we are concentrating upon evolving some specific suggestions for improvement of the tax structure.

“We are pleased to note that the Minister of Finance has promised that consideration will be given to these," said Mr Tucker.