REDUCTION IN TAX ON WAGES

Ashburton Guardian, Volume 67, Issue 160, 19 April 1947, Page 5

REDUCTION IN TAX ON WAGES

CUT OF 6d IN £1 FROM MONDAY (P.A.) WELLINGTON, April IS. From Monday the rate of the - wage tax will be reduced from 2s to 1s 6d in the £. The reduction involves the abolition of the National Security Tax.of 6d in the £, the remaining 1s 6d being for Social Security.

The.Acting-Minister of Finance (the Hon. A. H. Nordmeyer) explained that the new rate did not apply to all salaries and wages paid out on or after Monday, hut only to' amounts earned on*'or after that date: The Minister cited as an example the case of an employer paying wages on Wednesday for the week ending oil Tuesday. in such a case it was necessary for an apportionment of the wage for the week ending Tuesday, April 22, to be made. That part earned up to and including Sunday, April 20, was chargeable at the old rate of 2s in the £, while the amount earned for the balance of the week —Monday and Tuesday —would he chargable at the new rate of Is 6d in the £. The Minister said that the Commissioner of Taxes (Mr F. G. Oborn) was distributing a circular to employers through their various organisations which includes tables showing the amount of charge under the new rates. Because of printing difficulties it had not been possible to issue this to organisations as soon as had been hoped, hut quite a number of employers’ organisations had received copies of the table, and the balance of the distribution should he completed within a few days.