SALES TAX AMENDMENT BILL
EXPLANATORY NOTE
THIS Bill amends the Sales Tax Act 1974 to provide for new rates of sales
tax on motorcars.
Clause 1 relates to the Short Title and applies the new rates of sales tax
to motorcars imported into New Zealand on or after 9 August 1974 or sold
(otherwise than to a licensed wholesaler for subsequent resale by him) by a
wholesaler or a manufacturing retailer on or after that date.
Clause 2 inserts a definition of the expression "motorcar" and of the
expression "total piston displacement" in section 2 of the principal Act.
Clause 3 preserves the present rate of discount in respect of the prompt
payment of sales tax on motorcars at * of 1 percent of the sales tax paid,
irrespective of the rate of sales tax.
Clause 4 amends the First Schedule to the principal Act.
Subclause (1) excludes from Part A (which provides for sales tax at the
rate of 40 percent) motorcars included in Part B, Part BA, Part BB or Part Ftc
of the Schedule.
Subclause (2) adds to Part B (which provides for sales tax at the rate
of 30 percent) motorcars with piston engines having a total piston displacement not exceeding 1,350 cubic centimetres.
Subclause (3) inserts 3 new Parts to the Schedule. Part BA provides for
sales tax at the rate of 37J percent for motorcars with piston engines having
a total piston displacement exceeding 1,350 cubic centimetres, but not
exceeding 2,000 cubic centimetres.
Part BB provides for sales tax at the rate of 50 percent for motorcars with
piston engines having a total piston displacement exceeding 2,000 cubic
centimetres, but not exceeding 2,700 cubic centimetres.
Part Bc provides for sales tax at the rate of 60 percent for motorcars
with piston engines having a total piston displacement exceeding 2,700
cubic centimetres.
No. 103-1
hice 5c
Hon. Mr Connelly
SALES TAX AMENDMENT
ANALYSIS
2. Interpretation
Title
3. Discount on prompt payment
4. Rates of Sales Tax
1. Short Title and application
A BILL INTITULED
An Act to amend the Sales Tax Act 1974
BE IT ENACTED by the General Assembly of New Zealand
in Parliament assembled, and by the authority of the same,
5 as follows:
1. Short Title and application- (1) This Act may be cited
as the Sales Tax Amendment Act 1974, and shall be read
together with and deemed part of the Sales Tax Act 1974*
(hereinafter referred to as the principal Act).
10 (2 ) This Act shall apply to all goods( a) Imported into New Zealand on or after the 9th day
of August 1974 and-
( i) Entered therein for home consumption under
the Customs Act 1966, otherwise than by a
15 licensed wholesaler for subsequent sale by him; or
(ii) Before their entry for home consumption,
dealt with in breach of any provision of any of the
Customs Acts; or
(b) Sold by a wholesaler on or after that date, otherwise
20 than to a licensed wholesaler for subsequent sale
by him; or
*1974, No. 18
No. 103-1
2
Sales Tax Amendment
(c) Being goods manufactured by a manufacturing
retailer, sold by him on or after that date, otherwise
than to a licensed wholesaler for subsequent sale
by him.
2. Interpretation-Section 2 of the principal Act is hereby 5
amended by inserting, in the appropriate alphabetical order,
the following definitions:
Motorcar' has the same meaning as in subsection (1)
of section 2 of the Transport Act 1962:
Total piston displacement', in relation to a motorcar 10
with a rotary piston engine, means the capacity of
the chamber of the engine in cubic centimetres,
multiplied by a number equal to double the number
of rotors:".
3. Discount on prompt payment-( 1) Section 36 of the 15
principal Act is hereby amended by inserting in paragraph
(a) and in paragraph (b) and in paragraph (c) of subsection
(1), after the words "the goods", in each case the words
" (other than motorcars)".
( 2) The said section 36 is hereby further amended by 20
adding to subsection (1) the following paragraph:
" (d) Where the sales tax is payable in respect of motorcars,
to a discount of 1 of 1 percent of the sales tax so
paid."
4. Rates of Sales Tax-( 1) The First Schedule to the 25
principal Act is hereby amended by omitting from Part A
the words "Motor vehicles, including trailers therefor", and
substituting the words "Motor vehicles (other than motorcars
to which Part B or Part BA or Part BB or Part Bc of this
Schedule applies); trailers for motor vehicles". 30
(2) The said First Schedule is hereby further amended by
adding to Part B the following item:
"Motorcars having piston engines with a total piston displacement
not exceeding 1,350 cubic centimetres."
( 3) The said First Schedule is hereby further amended 35
by inserting, after Part B, the following Parts:
Sales Tax Amendment
3
"PART B
GOODS WHICH, IF NOT EXEMPT FROM SALES TAX, ARE SUBJECT TO SALES
TAX AT THE RATE OF 37* PERCENT OF THEIR SALE VALUE
Motorcars having piston engines with a total piston displacement
5 exceeding 1,350 cubic centimetres, but not exceeding 2,000 cubic
centimetres.
PART B
GOODS WHICH, IF NOT EXEMPT FROM SALES TAX, ARE SUBJECT TO SALES
TAX AT THE RATE OF 50 PERCENT OF THEIR SALE VALUE
10 Motorcars having piston engines with a total piston displacement
exceeding 2,000 cubic centimetres, but not exceeding 2,700 cubic
centimetres.
PART Bc
GOODS WEDCH, IF NOT EXEMPT FROM SALES TAX, ARE SUBJECT TO SALES
15 TAX AT THE RATE OF 60 PERCENT OF THEIR SALE VALUE
Motorcars having piston engines with a total piston displacement
exceeding 2,700 cubic centimetres."
WELLINGTON, NEW ZEALAND: Printed under the authority of the New Zealandi
Government, by A. R. SHEARER, Government Printer-1974