Sales Tax Concessions In Australian Budget

Chronicle (Levin), 11 September 1948, Page 6

Sales Tax Concessions In Australian Budget

CAXBERRA, Sept. 10. Saies tax concessions in the new Federal Budget will liave the elfect of temporarily lowering retail prices oi clotlnng, piece goods and furnislnns; inateriais which were not couponed durbig rationing. Many lines which were coupon l'ree were subject to 10 per ceat. saies tax and some as high as 100 per cent. From the start of business yesterday niost of these lines were exempt frnm tax. Retailers will l>e permitted to cJear stocks on which the tax was paid. The chief exemptions under the Budget are clothos made of navy inaterial, whether cloth. glass fibre, leather, rublmr or plastic; lionsehohi drapery and sot't furnishi ngs; bianket materialsj travelling rugs; knitting and sewing threads; and footwear. Despite an estimated reduetion oi £2,718,694 in the .administrati ve vote for the Departn ent of Shipping and Fuel, the cost of runiiing Go\ erniiient departmeiit.s in Australia will be £1. 322,753 liigher tliis year tinui last. Theonly other departruent showing esti mated lower expenditure is Kxtornal Affairs, the cost of which has dropped £18,743. The estimated total expendituro on departnients this linancial year is £26,913,00®. "The Prime M'nister's wa\uing against the dangers of iiiflation is among the most important (Vatures of the Budget, which varies little from publisherl forecasls, " coinniei Is ihe Sydney Sun. "The tax cuts will in. receised with gratitude, coupled wite critieism that in some cases tliey eould liave been iiuplemented earlier aucJ eould liave been greater. " Ile liientions two remedies to iufla I ion— iiicrea-md production from workers and higher efhciency from ciuployers. A lliird reiuedy is just as urgent-

i Iv retpiired — a reduetion of (tovern- ! ment expenditure and release of as j many Commonwealth einployees as jiosI sible to provide ffesh manpower for iiroductive industries. "