AMUSEMENT TAX

Sun (Auckland), Volume IV, Issue 1055, 20 August 1930, Page 7

AMUSEMENT TAX

PRIME MINISTER REMITS PART REVENUE TO BE MADE UP THE SEX'S Parliamentary Reporter WELLINGTON, Today. The remission of the amusement-tax 2d on Is 6d tickets was agreed to the Minister of Finance, the Hon. G. W. Forbes, after midnight last night, during the committee stages of the Finance Bill. The remission, however, will be at the probable expense of a 1 per cent, increase in the income-tax. Mr. Forbes said this was the only means by which he could make up revenue. The 2d tax was estimated to produce about £ 40.000. The question was brought up by Mr. p. Fraser (Labour—Wellington Central). who said he had spoken for tlio lirst time in the debate, but he had -ensed the feeling of the* House and the House did not think that a mother who took her children to the pictures in the afternoon should be penalised by the imposition of a tax of 2d on her is 6d tickets. Mr. Fraser knew that members of the House would be prepared to see other forms of taxation substituted. He personally did not like any form of amusement-tax. but he realised that money had to be raised. He did not object to the tax' on higher priced tickets as mucli as to the impost on rhe Is 6d ticket. Mr. Fraser took it that the House would support the Prime Minister in any other means to be adopted to make up the araouni. He held that to estimate the amount of revenue from the tax on the Is 6d rickets as £40,000 was rather optimistic. but the members of his party would help the Government to adjust the incidence of taxation. “INDIVIDUAL HARDSHIP 7 ’ Mr. A. Harris (Reform —Waitemata) claimed the tax would cause more individual hardship than any other tax of the Government. Mr. J. A. Nash (Reform —Palmerston) suggested that the tax should be adjusted to make the tax on 2s tickets 4d. Mr. D. G. Sullivan (Labour —Avon) reiterated Mr. Fraser's appeal and said it was apparent that the feeling of the members of the House and therefore of Parliament was that the concession should be made. Mr. Forbes said the amount involved was between £35,000 and £40,000. and if it were desired to abolish the tax on Is 6d tickets revenue would have io be made up in one other direction only and that was in the Land and Income-Tax Bill. Mr. W. D. Lysnar (Reform —Gisborne): You'd better leave it alone, then. Mr. Forbes said the Government could not drop £40,000 unless he made other provision for it. He had put on the tax with great reluctance, but the House had indicated that it should be made up in another direction. He was quite willing to let the Is 6d ticket go free and he thought 1 per cent, extra on the income-tax would bring in the ti mount. REFORMERS PROTEST Reformers made ;l babel of protest. Mr. Nash crying. “Will you? Will you?” A Member: Make it up on the higher-priced tickets. . The leader of the Opposition, the Rt. Hon. J. G. Coates, thought the Prime Minister had acted wisely in taking off the tax, but he objected to the threat that was raised about making up revenue by increasing the land and income-tax. Reform would not stand that for ever. Mr. Forbes denied threatening the House and said he had informed members that the only form of making up revenue was by increasing the incometax. Mr. C. A. Wilkinson (Independent— Bgmont): What about the high-priced tickets? Mr. Forbes protested that he had tried other ways of getting revenue, but members had blocked these. ITe had only one recourse. The Hon. W. Downie Stewart (Reform—Dunedin West) suggested that one means of getting revenue was for the Government to release special issues of stamps for such islands in its areas as Fanning Island and Pitcairn. South Africa and Australia had made big profits by this. Finally the remission of the tax on Is 6d tickets was agreed to.