A SALES TAX

Hokitika Guardian, 30 January 1933, Page 2

A SALES TAX

IMPOST ON BACHELORS?

(Per Press Association ~ Copyright.)

WELLINGTON, January 28

Although not prepared to elaborate on the Government’s policy statement oil increased taxation which will be necessary to reduce by £2,400,000 the anticipated revenue shortage for 193334, Mr Forbes, in reply to inquiries this afternoon, left the impression that the introduction of a sales tax is part of Cabinet’s progyramrae. Mr Forbes wag reminded that when the sales tax proposal was previously under consideration, it was estimated by the Economic Committee that the impost would produce an additional £1,000,000, and that it was obvious that such a source of revenue could not be ignored in the present sercli for funds. The Prime Minister agreed that it must be a subject for speculation. There could be no doubt about that. He, however, gave no positive answer to the suggestion that the tax would be adopted. Similarly, Mr Forbes avoided direct reference to the levy which will have to be made by way of ordinary income tax. He offered no comment on the suggestion that the statutory exemption might be further reduced, say from £260 to 220, and applie d in such a way as to give it the effect of a bachelor tax. It was stated by Mr Forbes, however, that a taxation Bill would be introduced this session, Mr Forbes intimated that no date had yet been fixed for the operation of the 15 per cent reduction in railway freight charges. The legislative programme for the coming session was still in the course of preparation. He expected the Bank Indemnity Bill to be passed by Wednesday night. Asked whether Cabinet was still looking on the bright side of life, Mr Forbes replied: “Most certainly. There may be shadows in the valley, but we are keeping our eyes on the sunshine on the hill.”