THE STAMP DUTIES ACT.

Evening Star, Issue 2945, 27 July 1872, Page 3

THE STAMP DUTIES ACT.

The following is the text of a petition now in circulation in Christchurch, and which has already been largely signed by merchants, the representatives of banks, and financial companies, &c., there : To the Honorable the House of Representatives in the Parliament of New Zealand assembled. The humble petition of the undersigned inspectors, managers, agents, and trustees of banks, linancial companies, insurance otllces, and others carrying on business in New Zealan 1, shcweth ; That considerable injury is being caused to the commercial prosperity of the Colony by the provisions of the loth section and Schedule A of the Stamp Duties Act Amendment Act, 1871, whereby joint stock companies and all incorporated companies carrying on business in New Zealand, whether incorporated in this Colony or elsewhere (exclusive of mining and flax companies), are annually taxed to the extent of one shilling per cent, on their nominal capital, the maximum tax being L2OU per annum on any one company. That the injurious effect of this legislation has already been experienced, several companies, especially insurance offices, having since the passing of this Act abandoned New Zealand as a field of operations ; while other foreign companies which had previously contemplated commencing business in this Colony have, owing to the imposition of the license duty, abandoned such intention, whereby a most pernicious restriction is imposed upon healthy competition in many branches of business to the injury of a large section of the community.

That the operation of this Amendment Act is further prejudicial inasmuch as it deters insurance companies of high standing and large capital from opening branches in .New Zealand they btiug unwilling to pay heavy taxes on commencing business and before any protits of consequence can be realised, thus abutting the door upon institutions in which the public would place confidence, and giving an undue advantage to insurance offices having small capital and unable to give substantial guarantees of their ability to meet heavy losses should such unfortunately occur. That it is inconsistent with the principles of justice and sound policy thus heavily to tax corporations whose object it is to introduce foreign capital, one of the main instruments in advancing the prosperity and promoting the industrial pursuits of a young • yuutr y. That it is unjust thus indiscriminately to tax foreign companies upon their nominal capital whether such capital is employed wholly or partially within the colony especially in view of the fact that were the neighboring colonies to enact similai laivs the same capital would be taxed several times OVGT. Your petitioners therefore humbly pray your Honorable House to repeal the 15th gectioß of the Stamp Duties Act Amendment

Act, 1871, so as to meet the prayer of their petition. And your petitioners as in duty bound will over pray, &c,, &c.