COST OF GROCERIES

Wairarapa Times-Age, 10 July 1940, Page 4

COST OF GROCERIES

EFFECT OF INCREASED SALES TAX

ADDITIONAL BURDEN MUST BE PASSED ON. CERTAIN FOODSTUFFS EXEMPT. The additional five per cent sales tax (making a total impost of 10 per cent), must be passed on to the public on all grocery lines, subject to the tax, said a Masterton grocer this morning. Cerfoodstuffs were exempt, he said, such as flour, sugar, butter, cheese, bacon, eggs, and cereal foods like oatmeal. Practically all other grocery lines, however, were subject to the tax. He pointed out that as the sales tax was on a percentage basis, the higher the cost of the goods the greater was the sales tax. As an instance, he quoted the price of a line of tinned fish, winch used to cost 5s 3d a dozen, plus dd sales tax, and which retailed at 7d to 8d a tin. Today that line cost 10s 6d, plus Is Id sales tax, and was retailed at Is 2d a tin. Prices of taxable goods, he said, would advance about £d on lines priced up to lOd and Id over that to is Bd. Quick selling lines liable to be increased in price included soaps, polishes, tobaccos, sauces, pickles, tinned fruits and fish, tongues and biscuits. On account of the collapse of the tea market in Ceylon, the retail *** price of tea would have to be reduced, but the increase in tax would keep the price as before. To those prepared to live on the bare necessities of iyß-tfie increase in the cost of living would be very small. To the average family, however, there must be a fair rise. As far as the grocery trade was concerned, the extra Is in the £1 tax on wages must reflect on turnovers to a certain extent. PRICE OF SUGAR GOVERNMENT CARRY HIGHER COST. STATEMENT IN WELLINGTON. (By Telegraph—Press Association.) WELLINGTON, This Day. A statement that the Government has decided to “carry” any increase in the price of sugar, and not pass it on to the public was made in a report supplied for publication by the Wellington Master Grocers’ Association after its monthly meeting last night. It was stated at the meeting that the increase was thought to be £4 13s 4d a ton. As the yearly consumption f of sugar in New Zealand was 77,000 tons, this means a total of £359,333 per annum, or roughly £90,000 to be paid out by the Government supply of sugar contracted for. It was felt at the meeting that the sugar question had not been dealt with at all satisfactorily and further representations will be made to the Government.