EXCESS PROFITS TAX CONDEMNED

Dominion, Volume 34, Issue 45, 16 November 1940, Page 13

EXCESS PROFITS TAX CONDEMNED

Reaction On Industry

The view that recent taxation legislation dealing with excess profits was ill-considered and was already reacting against the development of industry was expressed by the president of the Auckland Manufacturers’ Association, Mr. W. J. Truscott, at the annual meeting of the association. Air. Truscott said taxation was heavy and in some directions it was almost at breaking point. It was necessary to face the situation, for the alternative was inflation, which would be very much worse. There was the need, liowever, for a more equal distribution.

He was certain that, had the excess profits legislation aud its likely reaction been properly considered in its early stages, the Act would never have been placed on the Statute Book. There were definite indications that not only manufacturers but owners of other types of businesses were not prepared to accept extra responsibilities where they were not able to get some proper return from the added capital employed. Unless they had some inducement they would not take risks of developing business, specially as they had to place themselves in the position of meeting a recession in industry which w’as possible in the future. Mr. W. B. Darlow, a vice-president, said manufacturers must make profits iu order to expand their businesses. Manufacturing expansion also often depended on an increase of working hours. He had favoured a 40-hour week wheu imports were heavy, and there was in consequence little manufacturing work to go round. Now the position was entirely different. There were scarcities which had to -be overcome. He did not advocate a big permanent extension of hours, but expansion was necessary in the present time of crisis.