Douglas tax view ‘arrogant’

Press, 11 February 1986, Page 4

Douglas tax view ‘arrogant’

PA Wellington The Opposition finance spokesman, Mr Michael Cox has accused the Minister of Finance, Mr Douglas, of arrogance in believing he could make National Party taxation policy. Mr Douglas told a Society of Accountants summer school at Lincoln College on Friday that the chances of a future National Government’s repealing the goods and services tax were “close to zero.”

Mr Cox said he believed GST would be a big political issue at the next General Election and that New Zealand would be ready by then for a simpler system of taxation.

The people having to handle the compliance with GST, such as the Society of Accountants, were beginning to realise the complexity of this in-

direct taxation system, he said.

“In simple terms it takes 12 tax calculations to work out the GST payable to the Government on a can of peas. “The cost to processors, manufacturers and retailers of such a system will be enormous,” Mr Cox said.

Mr Douglas was trying to put a smokescreen over the present problems he faced.

“With this year’s deficit out of control and next year’s looking worse, he is left with two alternatives — he will have to increase the rate of GST from its stated 10 per cent or will have to cancel direct income tax cuts he promised last year.

“Those are the real political issues — not the arrogance whereby Mr Douglas thinks he can make National Party taxation policy,” said Mr Cox.