THE AMUSEMENT TAX

Dominion, Volume 11, Issue 138, 28 February 1918, Page 5

THE AMUSEMENT TAX

A. & P. ASSOCIATIONS PROTEST

THE NECESSITY FOR TAXATION

STATEMENT BY SIR JOSEPH WARD.

A. deputation representing the Council of Agriculture waited' upon the Minister of Finance (Eight Hon. Sir Joseph Ward) yesterday to ask thai agricultural and 'pastoral associations should be relieved from the payment of the.amusement tax. The deputation was introduced by Mr. G. Hunter, M.P.

Mr. F. W. Williams, president of the conference, said that the agricultural and pastoral associations were not on tho same footing as moneymaking institutions providing amusement for the public. They did not make money, in fact they were only enabled -to exist by the subscriptions of their members, and they performed a work of great national importance. The application of the amusement tax to the associations meant only £1600 or £2000 to tho Government, but it would force some of the smaller organisations out of existence, and it would be unfair in all cases. The deputation did not ask for the lifting of the tax as far as side-shows' and amusements of that kind were concerned.

Mr. A. Sutherland said that only in one instauce 'had tho Manawatu A. and P. Association made a profit, and then the amount had been very small. Mr. J. M. Johnson, also referring to the Manawatu Association, said that during the last six years the voluntary subscriptions had amounted to over £5700, and but for this money the loss on the shows held in the period would have been over £3000. The Taxation Department was asking for 2s. in.the pound on members' subscriptions.

Sir Joseph Ward, in reply, said he recognised the value of the work done by the A. and P. associations throughout the country. The tax could not be altered at the present time, since the consent of Parliament would be required. He would be in possession of full information before tho matter could bo dealt with by Parliament at the second session this year, and if the tax as far as it affected the A. and P. associations did not produce more than £1600 a year, he would be prepared to give favourable consideration ■ to the request for its removal. But if tho revenuo produced was larger, Bay,. £10,000, there could be no question of abandoning it. without . imposing some other taxation in its place. He felt aa Minister of Finance.that he could not consent to the loss of revenue at the present time. He realised .that there was such a thing as "pin-prick-ing" taxation, and he would be glad if it were possible to place all the taxation on a broad basis, but the prime necessity was the obtaining of the millions that iho Government required. '

If the end of the war came twelve .months from now, added the Minister, .New Zealand would have to face an increased liability for interest on, war loans of £7,000,000 per annum. The people generally were responding magnificently to the demands that wero ,made upon them for war taxation. There were complaints at times from persons.who found that they were being asked for an additional £10 or £100, but on the other hand there were many men who were cheerfully .and unprotestingly borrowing the money to.pay.the very heavy taxation . imposed upon them._ He had been reproved for withdrawing the war profits tax, and when he had said that tax would not bring in the money that ho needed he had been told to look at what Canada was doing. Well, Canada nko had withdrawn the, war profits tax, simply beoauso it would' not produce the big revenue required in time of war. A war profits tax in New Zealand would not produce within ■ £2,000,000 or £3,000,000 of what the Government was getting from tho existing taxation, as imposed under tho Finance Act of last year. He had to look beyond the war to the period following tho declaration of peace. Nobody could say confidently what financial conditions would prevail- in that diffioult time of reconstruction and reorganisation, but he had no doubt as Minister of Finance that it was bis duty to, see that New Zealand had millions in hand. at that time. The present revenue of the country was about £18,000,000, and it was possiblo that after the war there would bo a j drop of several millions. A possibility of that kind had to be faced now. Eeferring to another point raised by the deputation, Sir Joseph Ward promised to see that the basis of the amusement tax as it affected the associatione j was the same in all cases. There had been various interpretations of the Act in the past.