MANUFACTURERS PLEAD FOR TAX REDUCTIONS

Chronicle (Levin), 5 July 1947, Page 2

MANUFACTURERS PLEAD FOR TAX REDUCTIONS

WELLINGTON, July 4. Beeause a recent report indicated that this year's Budget is at present receiving the consideration of the Minister of Finance, the New Zealand Manufacturers' Federation has decided to urge upon him the necessity of an all-rouno down-scaling of taxation. ".Savage taxation," said the Federation president, Mr. W. J. Truscott, todav, "is the prime cause of today's low production and high prices. By an ailround down-scaling of taxation we mean all possible reductions of taxes on earnings, goods and business returns. A reduction in wage tafation would bc of more real value to the whole community than a blanket rise in wages which would serve only to aggravate present-day inflationary trends. ' ' Referring to the uneeasing spiral of wages and prices, Mr. Truscott said he, believed that taxation reductions on wages and goods would do much to rectify the position. "The buoyancy of the revenue — there is stated to be a i , ii .I',,,.

surplus of £4,611,00*0— should alford the Government somePftjYportunity of eft'ecting reductions in the wages tax, saies tax and the 15 per cent. surcharge on income tax, ' '" said the ' statement. ' ' In addition Mr. Nash has previously indicated that this year he would look at the question of consolidating taxation legislation. The federation urges that this most important matter should receive attention during the present session of Parliament and that, in the process of consolidation, many anoinaiies in the existing legislation should be removed. " In conclusion Mr. Truscott emphasised the necessity for a reduction in living costs and an inerease in the supply of consumer goods. High taxation, he said, undoubtedly kept prices hign and destroyed the incentives for greater production.