TAXATION REDUCTIONS.

Ashburton Guardian, Volume XLV, Issue 10168, 24 July 1924, Page 3

TAXATION REDUCTIONS.

GOVERNMENT’S POLICY.

OUTLINED BY PRIME MINISTER. (Special to tlio "Guardian.”) WELLINGTON, July 23. The Government's policy in connection with taxation reductions was outlined by the Minister for Finance in the course of his financial .statement to the House of Representatives to-night. The Minister stated: The question of taxation lias continued to receive carotid and detailed consideration. In pursuance of the policy the Government has adopted, of gradually reducing taxation as conditions permitted, you will again be asked to approve of further remissions. These will lie adjusted in such a manner as to give the greatest relief to all classes of the community, and, at the same time, to stimulate the productive powers of the Dominion. On the present basis of taxation the revenue for the current year would probably produce £28,857,620, , whilst the expenditure is estimated at £27,505,060, leaving a credit balance of £1,352,560. The remissions granted last year are valued at £1,200,000, and this 'year, after providing for interest and debt-reduction charges, as well as for the efficient and economical administration of Departments and services, I hope to be able to ask Parliament to reduce the burden of taxation by about £1,000,000, particulars of which will be supplied in the legislation dealing with the subject. I must, however, again remind those who, indifferent as to cost and unable to say where the money is to come from, clamour in one voice for increased expenditure and a reduction in taxation, that they cannot have both. I quite recognise that, as the population grows and the national wealth increases, the expenses of Government, no matter how economically administered, must expand;, but that expansion must not be great® than the increase in income. There should he a sufficient margin to ensure safe finance and to provide susme contribution towards reducing the-dead weight of our war debt—one of' the best means of casing the taxpayer.