asked the Minister for Finance if he is aware of the distress caused to many small business firms in this country by the Government's recent imposition of a 5 per cent increase in the wholesale tax, particularly, in relation to its application to all goods purchased and not paid for before 1st January; and whether he proposes to take measures to relieve the hardship imposed.
Ceisteanna—Questions. Oral Answers. - Wholesale Tax Increase.
15.
I must first point out that the wholesale tax does not apply to all goods, as suggested by the Deputy's question. Food, drink, clothing, fuel, medicines, hydrocarbon oils and a number of other items are exempt from wholesale tax.
To the extent that the tax does apply to goods purchased by small firms, I do not accept that the increase will cause distress or hardship in relation to purchases made either before or after the 1st January, 1969. The Deputy will bear in mind, in regard to goods sold, but not paid for, before the 1st January, that traders will have had the benefit of increased prices between the 1st January and the date on which they actually pay for the goods.
Arising out of the Parliamentary Secretary's reply, will he not agree that the wholesale tax is operative from the 1st December on all goods purchased by small traders? Is he not also aware that the normal credit arrangements which small traders have will permit of the actual imposition then of the wholesale tax which will become effective on the 1st January?
My reply to the question dealt adequately with the supplementary. If there is any suggestion that the reply did not deal sufficiently with it, I think if the Deputy refers to the reply by the Taoiseach to the debate on the Finance Bill he will get a complete exposé of the matters he has raised.
If a small trader orders stuff up to the 31st of this month he will not get his bill until the 2nd or 3rd of January. Even if he wished to pay it, he could not pay it and, consequently, he will be paying it from the 1st of December. Is this the position?
He will have the advantage of increased prices.
I should like to ask the Parliamentary Secretary how he will have this advantage?
Because the prices will automatically be raised.
No, they will not be.
Will the prices be raised in the month on which the wholesale tax will apply?
No.
The cost of living goes up on the 1st of December due to the imposition of the wholesale tax in January.
That, evidently, is the Deputy's opinion.
Is it not possible to arrange that all goods ordered for the month of January should be paid for at the old rate?
The Deputy seems to be trying to advocate some means by which taxation can be imposed in a way that it will not oblige people to pay it at all.
Nothing of the sort.
The imposition of any taxation at all is almost bound to be unpleasant.
I am calling Question No. 16. We cannot debate this question all evening. I am sorry.