TAXATION REVIEW

Press, Volume CV, Issue 31003, 8 March 1966, Page 10

TAXATION REVIEW

Incentive ‘Stifled’ (N.Z. Press Association) NEW PLYMOUTH, Mar. 6. A review of taxation in New Zealand was urged by the president of the Retailers’ Federation (Mr H. D. Harford) at the Chateau Tongariro on Saturday night. The present high rate of taxation, particularly in the middle income group, indicated a definite tendency to stifle incentive in all fields, he told the federation’s annual conference. “Production, which in these days of problems of overseas exchange is the country’s lifeblood, would be increased if a complete and thorough review of taxation was undertaken,” he said. Few if any companies could expand out of retained profits under the present company taxation rates. “Any system of taxation which takes 50 per cent of a firm’s profits at the low profit figure of £3600 must have some effect on future development,” Mr Harford said. He said the maximum tax payable in New Zealand was arrived at on a much lower income than practically anywhere else in the world. The taxation survey was one field where a firm approach by the Government could be a major step forward in helping to solve some of the economic problems of the country.