Island

Injustice to Norfolk Island Sales Tax on Bananas Contrary to Spirit of Act

THE Commonwealth authorities continue their stubborn refusal to forgo the 2½ per cent. sales tax which they have imposed upon the sale of Norfolk Island bananas in Australia.

When, as announced in our last issue, it was discovered that the sales tax was being claimed in connection with this produce, most people believed that it was merely another case of departmental blundering. Urgent representations were made by various interests concerned; and Mr. S. Pollard, on behalf of the N.I. banana growers, took up the question very vigorously with the Taxation Commissioner. The reply simply was that “the sales tax is imposed upon the produce of N.I., because N.I. is not an integral part of the Commonwealth.” And there the matter rests.

Anything more unfair and ridiculous could scarcely be imagined. N.I., so far from not being an “integral part” of the Commonwealth, is so completely in the power of the Commonwealth that it is practically helpless. Except for a very rare ship to New Zealand, it has no market for its produce except the Australian market; and it has no chance of getting away from the Australian market. It must meekly accept whatever conditions and prices are imposed by Australia. It

is governed by Australia, but has no voice in the Australian Government.

It is without representation.

The position of the Territory is recognised in the Customs laws, which (as set out in the Norfolk Island Act) specially provide that there shall be no duty or excise charged in regard to N.I. produce. It surely is obvious that both the spirit and the letter of this undertaking are broken by the imposition of the sales tax. The primary products of Australia are free; the primary products of N.I. are taxed.

The matter will be forcibly presented to the Federal Parliament as soon as it meets at the end of October.

The expansion in the export of N.I. bananas to Sydney has been rather striking: Year ... Centals ... Value 1926-27 ... 4,600 ... £5,079 1927-28 ... 6,914 ... 8,256 1928-29 . 20,457 ... 23,929 ———