THE SALES TAX

Evening Post, Volume CXV, Issue 33, 9 February 1933, Page 12

THE SALES TAX

WRONG"

FORCED BY EXCHANGE

EASIEST COURSE' TAKEN

; .""The contention of [business- men, 'of the 'Evening Post,' and indeed of the Press generally, that the^ public would have to pay for higher exchange is upheld with a vengeance," said Mr. Edwin Salmond, president of the New .Zealand Importers' Federation, in discussing the Government's new taxation proposals this-morning.; "My own yiewj >■— for I have not had'an opportunity of1* 'discussing the matter with other members.of the association yet—is that the .sales tax was inevitable, once the Gov-> (.ernment was committed to high exchange. As the Hon. Mr. Downie .'Stewart has pointed out, it is more than ever necessary to balance the -Budget, and the Government has adopted- an inflationary policy. \ _he sales tax, though entirely wrong in principle because it forces up the cost of living for poor and rich in like-measure, was the easiest method by Which the Government could col•lect a fair amount of taxation, and 'that/easy course the Government has ..'taken. The other method, open was ■an export tax, but that the Govern_ient' has definitely refused to * con_ider. "With regard to the details, it seems to me that the Government has adopted a fairly simple method, and I notice 'that Mr. Coates has promised that he 'will consult with the business commun|ityupon particular, points of difficulty. \ "As I have said," concluded Mr. Sal'mond,'"what we. have pointed out all along has been proved to be correct, that the benefits of high exchange— for the pockets of financial institutions 'and some farmers—have to be found ;by* the general public sooner or later, ;and the first repercussion upon the gen--_eral_ public, the imposition of the sales tax, has not been long in coming."