NEW TAXATION SCHEME

Sun (Auckland), Volume IV, Issue 1025, 16 July 1930, Page 13

NEW TAXATION SCHEME

PROPOSALS ADVANCED BY MR. W. J. POISON AMUSEMENTS AND LUXURIES TTIE SUN’S Parliamentary Reporter PARLIAMENT BLDGS., Tuesday. A plan for the economic salvation of the Dominion was advanced in the House this evening by Mr. W. J. Poison (Independent —Stratford), who put forward a scheme for lowering the Customs duties, except oil luxuries, and raising the taxes on all forms of amusement and luxury in New Zealand as a means of making the financial pendulum swing the right way. He claimed that the great need in the Dominion was to lower costs. His lilan, he claimed, would not cause a drop in wages, and would increase production and stimulate industry. By reducing the Customs duties on necessities and tools we could bring down the cost of living very much indeed. By striking £2,000,000 off the Customs (Julies a wholesale price reduction of 20 per cent, could be obtained, and a retail one of 10 per cent. This reduction in duty would not affect New Zealand industries, Mr. Poison claimed, because the costs to the manufacturer in this country would be brought down correspondingly. He strongly advocated a tax on all luxuries. For example, a one-penny tax on all amusements would bring in £1,000,000, and a tax of less than onepenny a glass on the gross liquor sales of hotels would bring’ in another £1,000,000. Then Mr. Poison believed the Government should tax on the monopoly value of licences instead of on the present stupid system. Taxes could be imposed further on foreign pictures which taxed the gross takings ol’ New Zealand picture halls up to 60 per cent. Mr. Poison invited the House to think of the stream of gold going out of New Zealand, and mentioned that if he had his way he would give the foreign exhibitor’s tail a considerable twist. TOTALISATOR TAXES He would put an additional 5 per cent, tax on the totalisator and to compensate the clubs for the loss, of which they would be sure to complain, he would remove the embargo on telegraphing bets to the totalisator and bring gambling into the open air, instead of driving it underground as at present. The post office receipts on this account would increase by £IOO,OOO, according to the' figures supplied by the racing authorities, and the extra totalisator receipts would be in the region of £500.000. Then the tax on foreign motor-cars could be increased. America had virtually placed an embargo on New Zealand products, and New Zealand could retaliate by making the American car a luxury. All these taxes would be voluntary, and costs would he reduced through the Customs, and the pendulum would swing iu the right direction again. Labour had nothing to fear from the scheme because the workers' wages would be the last to lie touched, and when they did fall they would fall in conformity with the cost of living. The principle was endorsed by the Prime Minister of Great Britain and the Labour Party could treat it as quite sound.