THE SALES TAX

Hokitika Guardian, 18 May 1933, Page 6

THE SALES TAX

WILL IT EXCEED ESTIMATE

\V JaLLIN Ul Oj.\ , May 17

The receipts of the Customs department from the sales tax for the nrst period of its operation seemed to demonstrate, irom the figures in the four chief centres, that this is going to produce bumper returns. The official estimate of the yield per annum is one and a null' millions, but if the proportion oi me first period could be maintained Uiis would bo nearly doubled. However, inquiries show that such optimism is not justmed by the tacts. 3he period was more than a month, the tax commencing on Febiuary D, and the returns covering the period tiU March 31.

Another reason why the returns cannot accurately indicate the ultimate result is that sales tax is levied at the wharf where retailers do'their own importing. Thus the receipts from this source are paid in bulk, while the main source of sales tax revenue, on The transactions between wholesaler and retailer. only come in as the business is being done from day to day. It lias been found that the new tax is being collected without serious difficulty. Many of the early problems have been smoothed out in actual experience, and. Customs officers are highly appreciative of the helpful attitude of traders. The recognise that the tax'has to be, paid, and they show a ready desire to comply with the law’s requirements, added to which is a good deal of wise diplomacy on the part of the customs authorities.