SALES TAX

Otago Daily Times, Issue 26636, 5 December 1947, Page 4

SALES TAX

LOCAL BODY VEHICLES PROTEST BY CONFERENCE Dally Times Special Service INVERCARGILL, Dec. 4. A remit urging that the sales tax be lifted from all transport and machinery purchased by local authorities for the construction and maintenance of roads aroused some discussion at the annual conference of the South Island Local Bodies’ Associatipn to-day. “ When the Government does not pay sales tax on its own vehicles why should local bodies have to pay? ” asked the Mayor of Dunedin, Mr Cameron. “It will cost the Dunedin City Council £IOOO,OOO in sales tax for the purchase of buses when the transport system is changed over in Dunedin.”

Mr W. S. Mac Gibbon (Lyttelton Harbour Board) said that the Christchurch City Council would have to find £165,000 in sales tax in the council’s initial programme of buses. The people did not realise the cumulative effects of sales tax. A bus chassis in England cost £2200 and sales tax would amount to £7OO. In New Zealand it would cost between £IBOO and £2OOO to get a body built. “I cannot understand why it should be so high,” he said. “ That is the price of a house, and the body of the vehicle has not any bathroom or other conveniences. Where a local body is providing transport those people using the buses are under a tremendous burden and those who do not use them at all have to pay these exorbitant prices.” Mr T. F. Doyle, M.L.C..' opposed the remit. Abolition of the sales tax was not going to make the vehicles any cheaper, he said. The manufacturers would find ways and means of keeping the charges up. ! The remit was adopted.