“INSIDIOUS DRAIN”

Sun (Auckland), Volume III, Issue 807, 30 October 1929, Page 11

“INSIDIOUS DRAIN”

BUSINESS MEN DISCUSS PRIMAGE DUTY LETTER TO PRIME MINISTER “Business today cannot stand this insidious drain on its resources. The decision to lift the primage duty from certain foodstuffs at the beginning of the next financial year is certainly a good one. but, immediately, the remaining extra duty will become a class tax’.* This was tile observation of Mr. H. T. Merritt, president of the Auckland Chamber of Commerce, when asked this morning by The Sun to comment on the present attitude of Parliament toward, the extra primage duty. “The tax should never have been imposed, for it is widely admitted among business men that the revenue from importations was bound to increase this year. Anyone with faith in the country would have admitted that. “It would be more in keeping with the needs of the country if the whole of the' extra primage duty were removed, for the removal of a section places the remainder in the category of a class tax, and there is no argument in favour of it. “In the majority of cases this extra tax will be passed on. If it is not it is more than ever a class tax. “All commercial men feel today that if there is any possible chance of reducing taxation it should he exploited- to the fullest.” COMMERCIAL ATTITUDE The attitude of the Chamber of Commerce toward the extra primage duty may be plumbed by the following letter forwarded to the Prime Minister, Sir Joseph Ward, on October IS: ‘‘May I be privileged to bring beforo your notice the great increase in imports for the first six months of the present financial year. In view of the fact that this increase indicates a much higher return from Customs duty than was at first'expected and will definitely provide sufficient revenue to make a collection of the extra primage duty unnecessary, would you not consider before the end of the session the .abolition of the extra one per cent, primage recently imposed. I think I am expressing the almost universal opinion by saying that the extra primage was as unwelcome as it was unpopular, and its withdrawal will meet with wholesale approval. Furthermore, while lack of confidence and depression hangs over the business world with such alarming insistanee, the steps suggested above would go a long way to bring about favourable reaction. I trust you will give the matter more than your usual courteous attention. It is felt that the opportunity is provided for easing the burden of taxation in a xiarticularly popular manner. BIG EXTRA COST Another business man observed that the lifting of the extra duty on foodstuffs would have the double effect of keeping the cost of living down and placating the Labour Party in its attitude toward the measure. An executive head of another large Auckland firm said that the extra duty had resulted in no less than £3,000 being paid by his organisation in extra duty during the past year. Very little of this could be passed on as the hulk was on small lines.