OLD TAX REVIVED

Hokitika Guardian, 18 February 1933, Page 6

OLD TAX REVIVED

POPULARITY IN EUROPE

VARIATIONS IN CANADA

Although the sales tax was used in ancient Egypt and Rome and also in the middle ages, it is only since the Great War that it has become popular with Governments as a means of raising revenue. Since 1918, it has been adopted by Germany, France, Austria, Czechoslovakia, Hungary, Roland, Italy, Belgium, Portugal, Russia and -small States which achieved nation status after the war. Canada followed Europe’s l e *hl in 1920, an cl Australia in August, 1930. Canada -has varied the amount of the tax on 12 occasions. When first imposed in 1920 the tax was 1 per cent, tin sales by manufacturers and by wholesalers on imports. Two months later, the scale was varied to 1 per ceiit. on sales by manufacturers to wholesalers, and 011 sales by wholesalers, and to 2 per cent, on sales manufacturers to ,retailers oi consumers. A numoer of other alterations saw increases in the tax until it reached -a peak of 6 per cent, on s a l es bv manufacturers °r producers and on importations, and 3 per cent, on goods■ on th e restricted list. There were then gradual declines until June, 1931, and on April 7 last year tin? scale was restored to 6 per cent, and 3 per cent. Australia’s first -sales tax was -at the rate of 24 pe r cent, and became operative on August 1, 1930. The tax was subsequently raised to 6 p-i cent.