RETURN TO TREASURY OF £2,540,000

Evening Post, Volume CXV, Issue 33, 9 February 1933, Page 4

RETURN TO TREASURY OF £2,540,000

INCREASES ON SUGAR AND PETROL

SALES TAX OPERATES TO-DAY

The Government's plans for collecting the revenue necessary to bridge the gap in the national finances, as disclosed in tlie recent statement submitted to the House of Representatives by the Minister of Finance (the Right Hon. J. C. Coates), were set out in Customs resolutions presented to the House last evening. The Government hopes to, bring £2,540,000 to the Treasury as a result of the fresh imposts. '' ' The main features of tlie Government's proposals are. as follows:— A sales tax'--, of 5 per cent., estimated to yield £1,500,000. An increase of threepence a gallon in petrol tax, calculated" to produce. £500,000. An increase in Customs and excise duties on sugar of .one halfpenny a pound, estimated'lo provide a further £300,000. An increase- of eightpence a pound on cut and.plug tobacco to bring to tbe Treasury another £100,000. . An additional export duty on all gold;, wherever produced, of 12s 6d an ounce, estimated to furnish £140.000. The alterations take: effect as from to-day.

"It is a matter for much regret that in times like' the present it* should be necessary to impose further -imposts npon the community," said the, Minister of Finance. ''' The Government realises only- too well the -difficulties under, which business i^ being carried on to-day. We are, however, faced with a prospective Budgetary' shortage' of £9,500,000 and the financial stability of the Dominion directly depends upon bringing this shortage down to a safe amount. The utmost is being done in other directions by means of . economies, savings in interest, drawing upon reserves, etc., but it is, quite evident that tho Budgetary situation cannot be kept under control —and that must be dono at all costs—without obtaining a substantial amount from additional taxation. . The Government feels confident that the people will recognise the absolute necessity of the measures proposed and will do their part in assisting, the Government to pilot the Dominion through the present crisis. ' Labour Members: Not a chance. "The resolutions now before the BCouso are part of. the policy of the Government to achieve tho object'stated,'' Mr. Coates continued. . "As has already been annouricedj itds proposed to obtain about two and a half millions by additional taxation. The various sources-of taxation have in the past been largely availed of, but it is now necessary again to have recourse to Customs duties on articles such--as- • sugar, - tobacco, and motor spirits...- It 'is.^als'o proposed to obtain some.'.additipnalr'reven-ae ;from* gold exported.,/ :■'...:_"'_:.::.'- ■-'%■'.:.'': /.---. :: _ THE. TAX ON SUGAR. •."!.' With respect to/these articles the position'iis as. follows:^; :. /Sugar.—The .chief source of supply of: refined sugar is: from-the refinery at Aucldanda-vThe dirty on such sugar has been; increased from -Id to l*d per-1b..-----•'*'lt w^ll'be seen from the resolutions that it is proposed... tp make the-duty on. imported reflii-d-ugar lid per, lb and; that "the.'duty-.on raw* sugar is'set down at Id per lb. :■ The former is to grant the. local manufacturers the same measure of protection which they have enjoyed for:several-years arid the latter is to ensure thatthe duty is charged on sugar refined in New Zealand. r "As vindicating*, that; the' extra duty will not be -great burden on the community I.may -mention that, according to the informatidn 'in my possession, tho retail /price of ?sugar in London and : Wellington has been about; the same and the'New-Zealand price, even with the'rincrCasod duty, should be much lowerthan that in Australia.* FRESH ?MPOST ON TOBACCO. .:"., j; is madofor ariincroase in ; ther duty on pipe. tobacco by Sd-per lb".or .Id, per, 2oz tin.. The" duties nOw proposed on ; imported _ tobacco; are as under:— :'.:; .•:,:,;■' -':.-.•;.' Tobaccp, cut,\6s.lod pchpdund." .; .-Tobacco (plufc), 6s 8d per pound. ■ " The rates of .excise duty on. similar kinds of tobacco made in New Zea. land/, whether; from imported or from locally: grown'leaf have been increased by. 8d per pound'and are now fixed "it 4s OJd and 3s lO.d in the case of cut ' and plug tobacco respectively: "The extent: _ the protection accorded to the New Zealand tobacco grower -and' manufacturer has been maintained.-: ;: ■■■■-•"'- . \/;.--' _'maypoilit out" that even with those increased rates on: tobacco the ; duties now^proposed, are less than'those m force, in. the United Kingdom and Australia., Iri.the former country: the rate on the bulk of the importations is at present: 9s. 6d per pound and in the latter: country,9s 3d and 9s per pound ■on cut and plug tobaccos respectively. _ * MO^OR SPIRITS: ;-■ '■:-.:" - /i, P . v?'ioa' lsmade for an increase ih ; the, duty on motor spirits to lid ncr gallon.; ■ .-' .■'-" :-'-..::- : e . "It -proposed'that, the additional revenue, to be obtained from the in- ' creased dutyon _otor spirits is to remaan in the Consolidated Fund and' ' not be transferred to the Main High- * ways Account and certain local bodies Provision to; this end wiU be contained in the Customs .Bill, which will be lnteoduced at a later date to confirm the Tesolntiohs. - ' '■■ ■ /bUTY ON GOLD /EXPORTS. ""As honourable members are. aware •the present price of fine gold (ie 24 carat, gold) in London is about £6 •Is per ounce, Which is equivalent' to £5 0s lOd per ounce of 20 carats on which the existing gold-export duty is •based. • ■ ' '. , "This means-that the present value of 20 carat: gold, in New Zealand currency, is £6 6s, as'compared with the price under normal conditions of £3 . 10s lOd- peribunCeil \ ■■• •-' -. ■'• "In view of the < premium, .which will : now be obtainable: from gold exported \ from the Dominion it has,been, decid- . ed_ to obtain additional "revenue from ■ this source. {'~■" .--; ~. ' "Under the present Gold Duty Acts . export duties on gold exported from \ New Zealand are payable as follows:— \ On North'lsland gold..'. ...-,- \ ; obtained by allu- . ■ *'. - : i vial or . dredging i processes ........ 2s per oz. 1 .On other North Island:.. ,/ i . ./gold' .....'.'....;.'"'2s 6d por.oz. i On ; South gold '■-■'. obtaihedi 'by 'allu- 1 j vial or dredging . l processes .. .... No duty: On other South Island , >-. gold ■/.......;.... 6dper oz. ■ \ "Of these duties 2s per ounce (pay- ' able in the North Island only) is allocated, to the local authorities in: the I district-in which the gold is produc- i ed, and the sixpence per ounce is ulti- '. mately credited to the aid of miners' : pensions. ;' ".■-"; ; " The resolutions now before the i .provide, for:an additional duty ] of 12s 6d per ounce of 20 carat fine- 1

ness to-be paid in respect of all gold exported! from New Zealand "wherever it is produced. "It is-intended that this duty should be made payable on old gold jewellery, plate, etc., exported as such or on gold obtained by melting • down such jewellery, :plate, etc. This object is achieved by the amendment proposed in the resolutions of tho definition of: gold in the Gold- D-ties Act, 1908. "It is proposed that this additional revenue to' be obtained from the export of gold, is to remain in the Consolidated Fund. ■ Provision for this *\yill be made in the confirming legislation." The additional revenue expected to j be received j during a full -year from, the proposals is as under:— . ' ' ' £ Sugar .................. 300,000 Tobacco 100,000 Motor Spirits .......'... 500,000 Total from Cnstonis and Excise Duties 900,000 Export Duty oa Gold ..' 140)000 £1,0.0,000 "