Sales Tax To Help Local Bodies Urged

Press, Volume CVI, Issue 31114, 18 July 1966, Page 10

Sales Tax To Help Local Bodies Urged

(New Zealand Press Association) HAMILTON, July 17. The Municipal Association has asked the Government to consider a national sales tax to help provide an alternative source of finance for local bodies.

A deputation had met the Prime Minister, who had promised to “look into it,” said the association’s secretary (Mr C. L. Bishop). He said alternative sources of local body finance had been sought for years. “Ratepayers bear the greater burden of local body finance, and this leaves about two thirds of the population who are not having to pay their share,” he said. “The Municipal Association does not feel local bodies are get ting enough finance.” A national sales tax had

been suggested again because the association recognised that indirect taxation would be introduced. “The Government is interested—particularly if we come up with a watertight scheme.” Mr Bishop said. “One big problem is that the Government does not want to be involved in the collection of the tax.”

He described a tax in the United States where a 4 per cent charge is made on the retail turn-over of mainly luxury goods. Premium bonds were also mentioned to the Prime Minister, who was also asked to establish a Royal Commission to examine the structure of local government. The deputation also asked for an examination of the differential between local authority and government loan interest rates.