THE TAXPAYERS' PART

Auckland Star, Volume XLVI, Issue 232, 29 September 1915, Page 8

THE TAXPAYERS' PART

FINANCE BILL BEFORE THE HOUSE. - MONEY URGENTLY WANTED. DETAILED EXPLANATION BY FINANCE (MINISTER. CUSTOMS SURTAX. niPORTS FROM GERMANY. (Bj Telegraph.— Parliamentary Reporter.) WELLINGTON, Tuesday. Tiic Finance Bill covering all the new taxation proposals and the Public Works J. 0.111 authorisation wa.s discussed by the House of Representatives* to-night, the Minister of Finance- opening the debate with a detailed explanation of tile complex measure. ■ Jμ moving the second reading, Sir Joseph Ward declared that the bill was a dearly defined financial policy, which the Hoiwe had. "ith one or two exceptions, already contirmed. He did not disguise the fact that the proposals •wcic.very. large-indued for tliis country, but the money had to bo found, and the bill would not provide v penny more than was necessary. Discussing the mortgage tax. the Minister pointed out that under tire bill income tax was to be paid on the interest of a mortgage, provided that th<- tax paid Was iv no case to be less than the amount ]>aid by a.-sc-e«sing the capital sum of the mortgage, by one penny in the £. BANK TAX VARIED. The Budget proposed to increase the bank tax to 25/ per cent, and to increase the note from 15/ to 20/. but, aa a. result of inquiries, he was not at all sure that ho. could obtain the required revenue. The banks would use more cold and fewer notes, but, by charging them on -the income tax assessment of assets and liabilities on a baeis of 30/ per cent, the State would be sure of getting the revenue. A section provided for the exemption of payment* to any superannuation fund from income tax. A class of income to be taxed nnder the bill was that derived as commission profits on Xew Zealand produce sold on contract out of the country. The bill provided, in addition to the ten per cent penalty for nonpayment of income tax. a recurring penalty of onr per cent m tint lily. TrIE CUSTOMS DUTIES. The primage duty of 1 per cent was estimated to produce £200,000, but this was a fluctuating quantity, owing to the uncertainty that our imports would reach last year's imports. Personally he thought it would not be a bad thing if our exports kept up and imports were lessened. A clause empowered 50 per cent, surtax to be levied on enemy goods. For the seven months preceding the Customs Department was able to obtain the details of port of origin. The items and values of goods imported from Germany in the seven months were aa follows: Apparel, £80,000; cream of tartar, £22,000; drapery, £33,000; fancy goqds, ioo.OOO; hardware,. £24*000; hosiery, £2-4,000; electrical machinery. £36,500; manures. £140,300; pianoe, £34,700; seeds, £25,000; tyres for motors, £89,000; all other articles. £457.000: total. £1,115.016. Importations from Austria during the same period "were £49,000; Turkey, £30.000; i Asiatic Turkey, £39.000. The Customs Department was of opinion that had we gome on importing for a year at the came rate the total would have reached C 1 .700,000. Nowadays trade followed the ship rather than the flag, but the overseas Dominions after the war should see to it by legislation of this eort that their money did not go to benefit those ■who used it to fight our own people. INCREASED BEER DUTY. Sir Joseph Ward said that the hea'i of tb* Customs Department eaid that t.:e new systeifa would encourage t!ie brewing of "the lightest ales. The duty mean from 2»d to 6d per gallon, according to the gravity of the ale or utout, and tho average consumption of oM-iound beer was estimated to produce an additional £70.000. A representative meeting of brewcra liad agreed that, the operation of the scheme would not he too unwieldy or unduly burdensome. The increased duty on beer would n'ean ■ an. additional £70.000 at lea*t L , besides ■which there was the increased riv-ty on stout, trigging in a further £7000 cr IJCSOOO. ADDED IMPOSTS ON RACING. Touching upon the one per cent to tw imposed on stakes won in hor.-e racing, the Minister explained that the bin provided for the deduction of th.-» taxation oy the racing club, and piid to the Commissioner ■within *even daye after the v cc m<? et > n g- This tax »v estimated to produce about £3000. A* to the duty on totalisator dividends, the tax -wouid.be, in the case of a 2 V totalhator, at the rate of 1/ on dividends of £•' and under, of 1/0 on dividends he-ta-ecn £2 10/ and £3 10/, and for every add.tional £1 of dividend an extli Od of duty. In the caec of 10/ totalißator«. the I'uty starts at 6d on dividend of 20/ and less, and tM for every sdditij'ial pound, as in the other cus». PUBLIC WORKS.LOAN. Provision ie also made in the bill for authority to enable the Minister to raise a £2,000,000 loan for public works purj,o*teh at a rate not exceeding 4i per cent. A clause enables any depositor in the Post Officf Savings Bank who wishes to invest in the loan to pet a transfer for the purchase of debentures, instead oi drawing the money before obtaining tin. debentures. CARRIAGE CONTRACTS. 1 he. last clause in the bill deals with i railway charge's, and enables anyone who | has entered into a contract for the car- | riage of goods at a fixed price to add "the extra amount imposed by the new Tailway charges for the carriage of goods to the price of the contract, and recover the extra charge from the one vith the contract was made. CRITICISM OF TU£ TAXES. Mr. Pcarce objected to the primage , duty, preferring a higher tax on specific j articles, such as tea. lie objected to the ; new syet«m of assessing lwer duty, and I \«naounced that he would, in committee, move to delete tuet portion of the bill : «" old Dl<thoJ ._-*"• ■HCUCfflabe eS.lin-Hkr.l r..-r..t lliof n /National \ i 5 said mvoifer of the com«R tomkful tQ the

' National Government, it was the workers, who had got off lighter than any other class in the country. This could 'be easily demonstrated hy comparison with the British Budget, which imposed ' taxes on keroecne, tea. and many other I commodities used by the workers. The member for Aahburton asked the Government to put another £70,000 on beer. He wanted to see the brewer and not the working man to pay it. THE COUNTRY PHARISEE. "I object to the primage tax, aiul would have preferred some special tax on some special articles, because, it would have ensured a more equal disrtribution of the burden." announced Mr. leitt. "I don't like this invidious comparison between the city and the country man, and .the attempt made to impress members with the idea that the country man is bearing the entire burden. We are wearying of this pharieaical talk of the farmers bearing the burden of national development." As a prohibitionist he objected to depending on revenue from liquor, but he recognised thai ,the present proposals •would mean ljd.f> 2d ;i gallon. The new method of assessing the duty was not going to lessen drinking, and he would Bupport Mr. Pea-rce's motiou. AN AMENDMENT. }Ir. Hine eaid he would move thai the House disagree with the proposal to introduce a primage duty of 1 per cent, and recommend the viovornment to impose a minimum beer duty of sixpence per gallon, and reduce the proposed primage duty proportionally. He expressed his objection to th* impoxition of any greater taxation on the necessaries of life than was necessary. Mr. 'Hioe also suggested thn.; the prosecution of Public Works eenicOT ithmild be tapered off while the financial pressure on the country wag so great. MINISTERS' ANSWER TO CRITICS. The Miuister of Finance, speaking to the amendment contended that the proposals embodied in the bill were the easiest forms of taxation for the workers which had ever been proposed in any country in the world. (Country members: Hear, hear.) Compared with the taxation proposed in the Old Country, the hnrden phtccd on the workers waa infinitesimal. The National Government had been formed to help the country through a crisis, yet members who supported it were endeavouring to rub salt into wounds that did not exist. As to taxing the wealthy man more severely, why there were only 66 men in New Zealand earning- over £5,000 a year, and if all that income were taken what would it amount to? Sir Joseph declared that certain Labour members tried to nib salt into wounds which did not exist, in the hope of benefiting a section against the National Government. In the Old Country the income tax exemption was r-Hluced to £i:f> a year, while the imports of foodstuffs vas infinitely greater than anything of the kind contemplated here. Aβ to the primage duty, did members mean to say that the primage on sugar and tea vcas going to oppress the workers of this country? Would members insult the intelligence of the workers by saying that they wanted to escape any contribution to meet obligations, which, among other things, included a pension scheme tojcoet about a million sterling for our soldiers and their dependenta. the bulk of whom would, in the nature of things, be son* and daughters of workers? As in Engltnd, the necewrit.y of the position wi# Miporjor to all political consideration* At one o'clock Mr. Payne waa expressing the opinion that the policy of this country should be one of protection for our industrial enterprise, and so assist the workers. THE BILL IX COMMITTEE. At two o'clock "Mr. Hine's amend ment reached a division. wiich lapsed for want of a second teller. The bill immediately went into committee. When the clause proposing a surtax of 50 per cent on enemy gooda was being considered, .Mr. Veitch expressed the opinion that such a sweeping tariff might lead to exploitation of the New Zealand public by British manufacturers. He urged thai the tariff on German goods should be just sufficient to shut out enemy goods. Mr. Parr contended that every effort should be made to -ban German goods, arguing that even 50 per cent could be whittled away by shipping and other enbsidics. v Mr. Fletoher suggested 100 per cent. Country members urged caution, potash being mentioned as a necessarj commodity, only obtainable from Germany. Sir Joseph Ward expressed the opinion that the proposal would be sufficiently prohibitive. He pointed out that the surtax could be altered or reviewed by Order- in -Council. It would probably be neceseary to review the clause next year. Mr. Pcarce moved that Clause 33 (dealing with the beer duty) be struck oat. as an indication that the beer tax should be increased by threepence a gallon under the present system of col lection. The amendment wae loss by f) to 48. The clause Telating to duty on totalisator dividend* was altered to ensure an equal tax of 2i per cent, in every pound or fraction invested. The bill -was reported, with amendments, at 3.30, T?ad a third time, and pis.-.cii. At 4.55 the Douse adjourned till 7.30 p.m. SUMMARY OF NEW PROPOSALS EXEMPTIONS FROM PRIMAGE DLTV. The Governmenffl changed taxation proposals were briefly reviewed by Sir Joseph Ward (/Minister of Finance) this afternoon, when the Ilouse passed renolutions authorising the immediate imposition of the Customs taxation, including the prhnage duty. It "was found impossible, said Sir Joseph, to leave out the kerosene tax and keep on a petrol duty. Hβ fulry recognised that the House ac a whole was opposed to the tax on oil, tut he warned his hearers that what "iv&e given away had to be made up. After full consideration, he had rcoramendri hU colleagues to put oil and kerosene on the free list entirely. (Applause.) In substitution there would be a 1 per cent primage duty -on all goods, imported into New I Zealand with the exception of a few the : resolutions enumerated n» follows: — Exemptions from Primage Duty.—OsI trieh feathers grown In New Zealand, ] when returned from abroad droned or dyed, upon evidence being produced to I the satisfaction of a Collector of Customs \as to their previous exportation; exhij biu for public display only in public ; museums, whether purchased under bond I or directly imported by or for presentation to such muneums. on, declaration that such goods will not be sold or otherwise disposed of In New Zeamad without payment of any duty -which may. be payable; p»inUqf»».itatuary, and works of

art. whether purchased-under bond or directly imported by, or for presentation to, an/ public institution or art association n-'gistered a« a body corporate for display in the buildings of such institution or association, and not to be gold or otherwise disposed of; statuary or •works of art, whether purchased under bond or directly imported, for display in any public park or place on condition* prcHcribed by the MinViter; medale, including any old or second-hand war medals. Humane Societies' medals, and other similar medals, also old coins, apparatus, appliance*, articles, and materials for educational purposes, as may be approved by the Minister, and under conditions prescribed by him; official supplies lor Consular officers of countries where a similar exemption exists in favour of British Consuts; passengers' bapgape and eficcte, including only -wearing apparel and ot'uer personal effects that hive been worn or are in use by persons arriving in New Zealand; al-,i implements, instruments, and tools of trnde, occupation, or employment of giirh persons not £50 in value", and household or othpr effects not exceeding £100 in value which have been in use for twelve months prior to embarkation by the persons or families bringing them to New Zealand, arid which are not intended for any other person or persons, or for «ale: alto cabin furnishings belonging to euch persons not exceeding in value £10; returned emptier, which are identified »» such to the satisfaction of a collector of Customs; specie, fish ova, goods provided for by section* 13(5, 140, and 141 of Customs Act, 1013 (produce of New.Zealand re-imported and goods imported -by the Governor or State)., , ..

What the concessions mean in money, and how the deficiency will be made up so as to make sure of an additional two millions, was indicated a* follows:— PROPOSED REMISSIONS. .£ Kerosene and petrol ..*...... 194,000 Telephone Bureau fees »«.•.*..— 20,000 Nonalcoholic beverages 20,000 •Reduced farmers' income tax .. 80,000 Total £314,000 PROPOSED ADDITIONS. £. Farthing mortgage t 65,000 Income tax on mortgage ...... 30,000 Additional beer duty 15,000 Primage duty on estimated imports of £20,000,000 ...... 200,000 Total - £310,000