HIGHER SALES TAX

Wairarapa Times-Age, 2 July 1940, Page 4

HIGHER SALES TAX

DETAILS OF APPLICATION. STATEMENT BY MR NASH. (By Telegraph—Press Association.) WELLINGTON, This Day. Except in cases of certain trade ■ groups where an adjustment of prices is still under discussion, authority has been granted by the Price Tribunal to all retailers to treat the increase of 5 per cent in the sales tax as an authorised additional cost and to increase their selling prices accordingly. Mak- ’ ing this announcement yesterday, the Acting-Minister of Supply, Mr Nash, said that this increase applied only to goods delivered by manufacturers and wholesalers as from and including June 28 and consequently bearing the additional 5 per cent tax. Mr Nash emphasised that it would be an offence under the price control regulations for retailers to make price increases in respect of stocks which had been delivered before the date the sales tax increase became effective. He said that a serious view would be taken of any such offences, and that as a routine measure it would be competent foi- an inspector to inspect relevant invoices in respect of which the higher consumer prices were being charged. For some lines, manufacturers, importers and distributing agents might, with a view to avoiding a rise in the price to the consumer, decide to reduce their list prices so that when subjected to the full 10 per cent sales tax the new consumer prices would be on the same level as previously obtained. Where this procedure was adopted the authority given by the Price Tribunal to increase prices by the amount of the extra 5 per cent sales tax would not apply. In cases where the adjustment of list prices was still under discussion, the general authority given by the Price Tribunal was issued on a provisional basis only, and subject to such variation as might be subsequently approved by the tribunal in consultation with the manufacturers, importers and distributing agents concerned.