MERCHANTS' TROUBLES

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

MERCHANTS' TROUBLES

INSTANCES GIVEN

DEFECTS OF THE SYSTEM

Some of the difficulties which have become at once apparent to Wellington merchants were mentioned by- Mr. A. D. Kerr, of the firm of Briscoe, E, W. Mills and Co., Ltd. . Mr. Kerr brought Tip the question of the reported intention of the Government to impose a sales tax at the meeting of' the council of-the. Wellington Chamber of Commerce on Tuesday. ' Although it was current rumour, said Mr. Kerr, that a sales tax would be levied, the commercial community had had no opportunity of knowing what w_ in the Government's mind, and was 'unable to make preparation for the putting into operation, of such an involved class of taxation overnight. 'The exemptions are fairly numerous, and on account of this fact the complications are materially . enhanced," said Mr. Kerr. "Any condition of noni stability is inimical to prosperous'trade.

Of the four points mentioned by me in the statement made at the -meeting of the council of the Wellington Chamber of Commerce, two have been incorporated in the resolutions introduced by the Minister of Finance. The other two points are equally important, and should be given consideration. These two latter points are the compulsory passing on of- the tax on all invoices, and the recoverability at law of such tax. 'The Government has given us what is considered a reasonable time, namely, twenty-eight days, in which to send in returns, and it has also adopted a fairly simple method of registration which will not weigh so heavily upon the merchant as that in the Australian system. The Government has also eliminated several of tho obnoxious provisions of the Australian Act, for which small mercies tho commercial community should be grateful. A SAFEGUARD REQUIRED. "In the resolutions brought down in the House no mention is made, according to the Press report, of the cash discounts allowed in usual trade practice. The compulsory passing on of the tax on all invoices is the only method to insure that the community is not being exploited and that the amount of tax paid only is passed on. "No mention is made of orders for Government Departments, and it is not known at present whether these will be exempt. "Anpther difficulty in connection with a merchant's business is the question of contracts in hand. Some system of exemption must be made in fairness to those firms or organisations which have taken contracts prior' to the bringing into operation of the new tax. Whilst this is going to increase the work on the part of merchants in keeping records of each transaction, it seems only fair that such contracts should be exempt. "In OTder to keep tho records which will be required under the Act, further additions will be made to the burden of overhead under which all merchants are at present suffering.. At' the'moment there are no licensed firms, and until this list is available there can be no exemptions, as no wholesale firm can assume that other wholesale firms are necessarily registered, and as registration is not compulsory until: the 31st March there iB going to be: serious disqrganisation" in the meantime. "Another factor .which, is going to. cause complications is the transference of goods irqm a wholesale- to a retail department when a firm is doing both classes of trade; and some statement will be .required from the Government as to the basis on which, this position will be dealt with. In Australia, it is understood, a certain deduction is made on 'all retail sales to. ascertain the wholesale price, on which the tax is paid.".