"RAISING THE WIND"

Rotorua Morning Post, Volume 2, Issue 466, 25 February 1933, Page 5

"RAISING THE WIND"

(Press. Assn.-

. customs tax amending bill N0W being discussed by parliament NECESSITY FOR REVENUE

— By Telegraph— Cop.sTight).

Wellington, Friday. The Customs Amendment Bill, giving effect to the duties imposed by resolutions which were passed hy the House on February 8, was introduced in th'e House of Representatives togiight and -was -still being considered at midnight. In moving the second reading the Minister of Finance, the Rt. Hon. J. G. Coates, said that the object of tho proposal was to obtain additional revenue from sugar, tohacco, motor spirits and gold. Under the conditions existing in New Zealand, the revenue from sugar was .obtainable chiefly from excise | duty on sugar made in New Zealand. Tobacco revenue, on the other hand, | was obtained from both customs and excise duty. The duty on motOr spirits was a customs duty. It was expected that these proposals would produce about £1,040,000 additional revenue in a fuli year, the estimate being made up as follows: — Sugar, £300,000; tobacco, £100,000; motor spirits. £500,000; the export of gold £140,000. Mr. Coates said that with respeet to the petrol tax, it was only the necessity for obtaining additional revenue that indu.ced the Government to increase the duty. The increased duty on tobacco was less than that enforced in Great Britain or in Australia, where rates were 9/3 and 9/- a lb> respectively. Under the petrol duty it had been decided to exempt fishermen and aviators. Speaking on behalf of the Labour Party, Mr. M. J. Savage, eontended that the falling revenue was due to the Government's policy of redueing the ineomes of the people, and that the timen had arrived when the burden of taxation was crushing industry and overburdening the people. During the war time, money had been raised by the utilisation of the public credit, and surely that method could be applied for reconstruction purposes during peace.