THE WAR TAX.

Manawatu Herald, Volume XXXVII, Issue 1372, 11 March 1915, Page 4

THE WAR TAX.

IMPORTS AND EXPORTS, WHAT 1 PER CENT. WOULD MEAN. The war will have to be paid for. That goes without sayiug. The New Zealand Goverument has undertaken a very large war expenditure, considering the size of the population, and this apart from the voluntary gifts in money aud kind for the National War Fund. That a war tax must be imposed is generally conceded, but as to what form it shall take there Is a great difference of opinion. All sorts ot taxes have been suggested in print and out of it —totilisators, entertainments, some exports and additional on some imports, liquors, and tobacco, and what Lloyd George described as the “elusive teetotaller” has been mentioned at a fit subject for taxation through the teapot, all tea that is British-grown being admitted duty free, and foreigngrowu teas 2d per lb., while the British consumer pays bis 8d per lb.

The opinion of Mr Harold Beauchamp, Chairman of the Bank of New Zealand, was asked by the Post as to what in his view would be the best aud simplest way to meet the cost of war. “So far,” he said, “I have not seen any practical proposal made in print as to how this large expenditure should be met. Personally I think a tax of one per cent, on the values of all exports aud imports would meet the case aud inflict no hardships upon anybody. All alike would bear the burden. It would not be a class tax, and I do not think it would be seriously felt. It would yield, I estimate, ,£500.000 per annum, based upon the total value of exports aud im ports of the year euded 31st December, 1914. One oi the merits of such a tax appears to me to be the cheapness of its collection. In the Customs there is already the machinery for the purpose. Everyone would pay the tax, but only in proportion to their meant What is 1 per cent, on, say, the ,£SO or ,£IOO of im;-r ed goods used by each consumer ? A.nd what is 1 per ceut. port f, u £? or ,£I,OOO which the farmer has received for his wool, wit" u-: its present high prices ? Tin a applies to the excelleu luur . received for meat and dairy produce, and othe r expels la many ins' rnces, I have uo dcwbt that a tax ou imports ot 1 per cent, would be r.-orae waolly aud solely by the importer, ; - it would be itather too small to pass ou to tr e consume:-. Nu one woi’d feel such a suit.il U would be so widespread and comprehensive, While the Goverument would

be relieved of a lot of anxiety and its revenue would come in in the simplest and cheapest way possible, In a lew years the war debt would be extinguished. In 14 years, based upon present figures only, some £6, 000,000 or ,£7,000,000 could be collected and nobody feel any the worse. The free breakfast table would not be violated, and costly and complicated systems of collection would be entirely avoided.

“It might be argued,” Mr Beauchamp weut on, “that the imposition of a war export tax would press unduly on the producer, who would be called upon ;■, pay Loth import and export duties, would, in short, carry the double burden. But the answer to that is that as a class the p:o ducer has greatly benefited, is benefiting, and is likely to benefit still further from the war bringing about such magnificent prices for all descriptions of produce. The non producing class are not so directly benirfiliug ; on the contrary they have to paj more for New Zealand produce consumed iu the country in consequence of its enhanced value outside.

“Another point: An extra '4' per cent, on imports and exports would furnish ,£125,000 per annum, which could, if necessary, be used within the discretion of the Government for the relief oi such nations as Belgium aud Be: via, who have suffered by the war to such an enormous extent — also, for the relief of the suffering of the United Kingdom and our own local necessities.

“It is recognised, of course, that nothing can be done in the direc lion indicated until Parliament meets, but one cannot help feeling that the members as a whole will support war tax proposals that will not press hardly upon one or more classes, but that will be distributed equally over all the people. The time is pressing, and I venture to thiuk that Parlia ment’s first duty should be the Imposition of an equitable and comprehensive war tax, to be collected simply and with the least possible expense.”