Stock tax ‘unfair’

Press, 15 February 1986, Page 3

Stock tax ‘unfair’

PA Wellington The Government’s proposed changes to livestock taxation could cause severe hardship to farmers, especially those increasing stock numbers, according to the President of Federated Farmers, Mr Peter Elworthy. Any further damage to New Zealand’s main export industry would have to be heavily weighed, he said yesterday. The changes as proposed went against several well established and accepted principles of fair taxation, he said. "First, the bringing forward of a tax liability as proposed could be likened to changing the rules of a

j game half-way through . and then applying them to r , the whole game,” Mr J Elworthy said. ’ > i Any changes should not : be retroactive. Otherwise , ' it would penalise those t 1 who had made agreer i ments in the belief that ■ they would be honoured ) by both parties. Second, it was an unfair 5 ‘ and heavy penalty to J ’ farmers who responded to successive Governments’ ■: calls for diversification, he said. 1 “Not only will this r' group of farmers, many of I whom are still increasing -: stock numbers, have to s : pay taxes on unrealised 1! income but they will sufi • fer reduced returns