SOUND FILMS

Hokitika Guardian, 20 August 1930, Page 2

SOUND FILMS

REVENUE FROM TAXATION. ESTIMATE OF £120,000. WELLINGTON, Aug. 18. The proposals concerning the readjustment of the amusement tax and the increased tax on sound films drew comment from members during the second reading debate on the Finance Bill in the House of Represeni tatives to-day. The Prime Minister said that the trouble with the system of levying] duty on film footage was that- it was difficult to access the value of a film when it rivas brought into the country. Whereas one film might return a very small profit, another might- prove extremely profitable upon being released, for they both had to pay the same amount of duty if they .were similar in length. It was thus felt that it would be quite inequitable to increase the Customs duty on films as a means of securing additional revenue, and it was decided to tax films on the profits they returned by exhibition. Taxation would be levied on the net receipts,, and these would be computed after the total expenses of the handling of the film, Customs duties, aild 12J per cent of the gross receipts derived had l>eett subtracted from the aggregate returns. Mr A. Harris (R., Waitemuta): Customs duties wilt still obtain? Tlie Prime Minister: Yes, but instead of trying to -raise additional revenue from Customs duties it was felt •" to be more equitable to make a duty upon revenue. ■ V He - added that the new duty on foreign sound films would he 25 per cent;.and that on British productions would be 10 per cent. : PROPOSALS CRITICISED. The proposals were criticised by the ■ Leader of the Opposition, the Rt. ; Hoiw J: G. Coates, • who said he believed the 'exemption from amusement tax 'should- include the Is 6d tickets, jit,; lmd to he remembered that the change from the silent to the sound filmsv.l v qd been a very expensive .procejss, /and tnjfpy ' picture hopse, undertakings were.;' in a very precarious position.' If’.';anything f iyere | ; dpne at thh. ! |present ;juncture,' which would hjiye i : the effect of interfering with takings, it Avast very , ,lia,rd ;to say where';the;trouble would end. The ppr.t of cinepiatograph filriis-inean ruination to every pictivijej company formed in New ;. Zetland -.with, local bapitaj. v It was estimated that £40,000 would be rais'ed '.By' the 1 ’■film- hire tax,- ; but Mr ;Chafes' said,;he', was informed that. -.£120,000 would- he • nearer the mark. He’liad also been informed tliat if the Bill were passed it would mean the end of British, films in this:' country. The tax tvak levied at the-;rate of 10 per cent of the net receipts of British films, and X 25 per cent: of "the net receipts of foreign films. It was very drastic ’ to take .25 per cent of the total earnings of ,a picture, Mr £ Forbes: Most of it goes to America, , rv 5... r- Mr Coates: How can the hon. gentleman tell that? That is just- an assumption. Are we to be content to have just the “dud” pictures? We should see that we get the best quality films. Mr W. J. Poison (lnd., .Stratford): They have the same tax in Australia. Air Coates denied that, and added that the effect of the proposal would 'be that two companies would “go out/’ ; '