CANADA'S LUXURY TAX

Dominion, Volume 14, Issue 61, 6 December 1920, Page 7

CANADA'S LUXURY TAX

It was announced in Montreal during October (states the- Montreal correspondent of the "Daily Chronicle") that the revision of tho luxury, tax, which wa.< recently presaged by tho Dominion Government, would not be enforced probably until Novem'ber 1, owing to the difficulty of making the necessary preparations. The luxury tax, with tho sales taxes, has proved tho most successful and productive of al Itho new modes of collecting funds adoptod by tho Government, sino it makes merchants of all kinds tax collectors, who are bound to collect the imposts on sales and make returns with full statements to tho Government monthly.' The now system 1 provides for tho issiio of excise stamps for all sales of articles under tho luxury tax, with special imposts running from 5 to 50 per cent., tho latter only affecting tKpensivo jowellory'aiul similar articles. Mere must purchase ample supplies of stamps to attach to the sales slips, which must show the price of the goods and to amount of tax collected. Mm idea of the Government is to compel-the collection of such taxes direct from K™™;In addition, a now regulation has been ssued provding that.before. tho stamps system becomes effective every manufacturer and wholesale and retail drnler of every kind must secure a Irndinn licenso from the Department of Internal Keyem™, These licenses wilt average 3 dollars apiece. - This is expected to pro-. d„ce a considerable amount probably 150.000 dollar?, in Montreal alone, while it cives the Government direct control since it is announced that, in cases of infraction, tho licenses w*U be cancelled automatically, thus putting delinquents out of business.