SALES TAX

Hokitika Guardian, 24 August 1933, Page 8

SALES TAX

FEDERAL GOVT. ATTACKED. v CANBERRA, August 12. Mr -Thwby, Country Party ’M.H.R. for 'Calare, is planning .an attack upon certain phases of taxation administration; with special reference to sales tax.

- M. r Th’orby, who is visiting Canberra during 1 recess to investigate complaints of anonr ]ie S) Bald to-day that be wondered how business’ people c<m!d tolerate “the numerous" vexations and lirritations imposed upon them by sales tax irrelevanties.’-’ 11 . ~

He intends to move the adjournment of the House of Representatives when Parliament meets to ventilate many complaitit s 'which, after investigation, he considers justified. ‘ Mr Thorby claims that the present sales tax ] a w is 'unnecessarily complicated,' ' and he will press for simplicity in administration. ” *

’• He claims that the taxation authorities have spent thousands in fighting costly legal action,, founded on trivial claims for sales tax, which could not return a fraction of the cost of litigation. As an instance, he said, he de-, partment claimed that milk loaves are pot bread, and are thus liable to sales tax.

? A country 'baker (selling a. few shillings’, worth of milk loaves a week was involved in additional expense and work in bookkeeping, filing returns, arid taking out a fidelity bond, and 'found •himself enmeshed in the toils of the sales tax regulations, which were a terror and nightmare to all business

people. k- Another example quoted is that of sausages. 'Meat was exempt from sales tax, but the department considered that sausages were not meat, and a fi.inall butcher, selling perhaps £1 worth of sausages a week : had to keep returns of the gausages sold, to give a. guarantee of payment of tax, and to go to more trouble and expense than hiis trade in sausage*, was worth. Mr Thorby stated be wa« especially opposed to the obligation imposed upon business people to take out J a 'fidelity .bond, to guarantee payment of tax. No othe r class of taxpayer wets subject 1 to such an obligation as well a,s to the ’innumerable petty tyrannies of sales tax’ regulations.