THE SHIPPING TAX.

Hokitika Guardian, 5 July 1923, Page 2

THE SHIPPING TAX.

THE DOUBLE TAX OX SHIPPING. AUSTRALIAN AXI) N'.Z. CAULK ASSOCIATION. LONDON, July 3. With reference to Sir W. Juynson Hicks's new clause in tile Finance Bill relating to shipowners’ double income tax (as cabled yesterday), the shipowners express the opinion that the new clause is the. first result of a world-wide movement ill favour of the abolition of all double taxation, on the ground that .such taxation seiiously restricts the development of trade. This .subject is being examined by a League of Nations committee, and by tile international Chamber of Com mono. The new clause is primarily due to the United States making an offer not to fax British ships, if Britain does not tax American-owned ships. It is learned that tile subject may be raised at the Imperial Feonomic Conference, in the hope of making arrangements with tho Dominions to avoid the present system. It is admitted the position of tin* Dominions is dill'erem, none having Dominion-registered ships trading to Britain, except the Commonwealth State Line, which, ns State property, does not pay taxation, either in Britain or in Australia. Nevertheless the shipowners express the opinion that it ultimately would he to the advnnla of the Dominions, which are chiefly primary produce exporters, to assist in removing burdensome taxation on shipping, because only by icauving running costs can a reduction of fares and freights be made possible. At the present. time the shipowners engaged in the Australian trade, complain of unfair Australian taxation, under which they have to pay both Federal cm State tax on an assumed profit of 10 per cent, on their gross takings whether they make a profit or not. The owners suggest that, though a reciprocal agreement, similar to the An-glo-American one, is impossible in the ease of Australia, it would eventually benefit the Australian producers if Australia either did not take the British shipowners at all, or received from the British Government a portion of the taxation which the owners pay to the latter. It is argued that, if the Deminions abandoned their taxation on the British lines, they would have an irresistible claim for a reduction of fans and freights, which eventually arc paid by the Dominion peoples. The shipowners believe an ideal system of removing hampering restrictions on trade would be one under which all the shipowners would be taxed only in the country of the ship’s registration.