TAILORING TRADE

Dominion, Volume 28, Issue 97, 18 January 1935, Page 6

TAILORING TRADE

Dissatisfaction With Sales Tax “OUT OF ALL PROPORTION” Dominion Special Service. Auckland, January .17. Dissatisfaction with the administration of the sales tax and the high landed cost of materials is at present being felt by members of the Auckland Master Tailors Association. “It is the opinion of the association.” said the president, Mr. 11. Preston, “that the trade is being taxed out of all proportion to its earning capacity.” Referring to the sales tax, Mr. Preston said the merchant tailors were registered as manufacturing retailers, and the tax, it was considered, appeared unfair when compared with that paid by those registered as retailers. “If we were registered as retailers, all dissatisfaction would disappear, as only one tax would be paid instead of two,” he continued. “At present we sell retail, and retail only. Tlie retailer pays his sales tax to the wholesale manufacturer and the former is finished with the tax and can resell the goods at any price he likes to charge, all tax obligations being satisfied. “Our case to date has been different. We pay the tax to the wholesaler when purchasing cloth, linings, etc. We then make a suit to order for an inindividual person. To be in the same position as the reseller of wholesale manufacture, we should pay the tax to the department on the cost of making the garments in the workroom, exactly as the reseller does. Our total tax would then be upon materials and net cost of making. Our selling price should not be taken any notice of. The reason for this demand is that in no way are we wholesalers, nor do we manufacture for any other trader.” A statement from Dunedin that many tailors throughout the Dominion were declining to pay sales tax until the authorities take action and bring what will be regarded as a test ease was referred to Mr. Preston. He said he knew that for some time past Dunedin tailors had been occupied in endeavouring to .secure an improvement in conditions, but he was not aware of recent developments. At present the Auckland association was waiting for information from Dunedin which would enable members to decide whether they ■were going to continue to pay the sales tax. If they refused to pay, they would be prepared to fight any action that might be taken by the Customs Department in the courts. .