THE SALES TAX

Evening Post, Volume CXV, Issue 32, 8 February 1933, Page 5

THE SALES TAX

STRONGLY OPPOSED,

"COSTLY AND COMPLICATED*

DIRECT TAXATION URGED

At a meeting of the Council of the "Wellington Chamber of Commerce last evening, Mr. A. D. Kerr gave an out-. v line of the sales tax legislation in Australia and Canada. He. said that tb.9 objections to a sales tax on the Ausv tralian. and Canadian models cama nnder three heads:— 1. Cost of collection both to the Government and to the individual trader. From the Government's, point of view it is easily the costliest tax'to collect, and therefore the most inefficient, and this at a time when tlie cost of Government administration., should be drastically curtailed. For a large firm the organisation, administration, and supervision of sales tax is one man's full time job, particularly when the firm is doing more than one straight out class of trade. ■ 2. Obstruction of the channels of trade. Australian, experience has been that the sales tax is so complicated ia its working, so arduous in its demands, that untold inefficient working resulted, in. every trade with the inevitable re^ suit.of all unstable conditions, and a. depression in trade. In some instances sales tax proved the last straw which forced traders^ already struggling against the depression into bankruptcy. ' 3. The public, actually pay the tax,, and as pointed out above, they pay, much more than the tax. This is inevitable but not fair to the community^ Mr. Stomach. Patersoa said the system in Australia was an extraordinarily; complicated one. There was a consensus of opinion there that the cost of collection, was very high.. Although it was understood that a sales tax ..was t» be imposed here, no indication: had been given by the Government as to the system it proposed to adopt. In tiemeantime, . however, the Chambers of Commerce might advise the Government to keep clear of such a complicated, system as that which had been adopted in^'Australia. In his opinion the;.object of chambers of commerce-and all those-who had sound finance s at. heart ' should be to favour as much taxation as.possible being directly levied. It was only by the public having to pay taxation directly that they would ever get sotind revision of taxation. Mr. McCaul agreed that taxation should be as direct as possible. That' system brought the burden home to the taxpayers. ... "EXTREMELY COMPLICATED." * Mr. A. Leslie Wall thought the cham-' ' ber should come straight out. with, a declaration that it strongly objected to a sales tax. The cost of collection would be very heavy. . ■ ; Mr. J. H. Whittaker remarked that the Manufacturers' Association viewed the suggested taxation with, apprehension. Mr. W. Simm said that after several years experience in Canada the retail method was abolished. , If-such, a: system of taxation was imposed, it should be carried out in. the simplest form possible. Mr. ' Stronaeh. Paterson moved the following motion, which was carried:—' This chamber urges on the Government the desirability of avoiding a sales tax, which form of taxation, has . proved costly in collection, disappointing in yield, inequitable in incidence, and extremely complicated ia operation. . -. ,7^: The chamber urges on the Government that it should secure its.necessary revenue by increased "direct-tax-ation of income and wages:■'---.-' .-..-."