WAR TAXATION.

Auckland Star, Volume XLVIII, Issue 137, 9 June 1917, Page 9

WAR TAXATION.

"SEED FOB REVISION,

C____r_lClA_ POINT OF VIKW.

The Auckland Chamber of Commerce v_steri.iv discussed the question of taxation. C*i May 11 the Chamber appointed g committee, consisting of the chairman, _j. Burns (the president) and Messrs. j. B. McFarlane, T. Peacock, A. B. jjoberton and G. W. Hudson, to consider {__ matter and report. The New Zealand Society of Accountants has also interested itself in the question, and at _he committee meeting were present Messrs. H. C Tews ley and G. W. Hutchinson from this body. The committee placed the following resolutions on the table as recommendations to the Council: — "Having regard to the progressively heavy financial commitments of tbe Dominion, this sub-committee of the Chamber of Commerce is strongly of opinion that the time has arrived for devising an equitable and elastic system of taxation, based upon the acceptance of the admittedly sound principle of apportionment of the load to the relative ability of each taxpayer to bear it." That the present excess profits rax is anomalous in its incidence and too Bruited in its scope."

"That a graduated income tax is the simplest, fairest and most elastic form of taxation that can be devised, and capable of yielding the largest amount of revenue with a minimum of friction." The committee intimated that the Society of Accountants was arranging te meet th? local members of Parliament to discuss the taxation proposals before the House meets, and the committee recommended that representatives from the Chamber of Commerce co-operate with tbe Society at such meeting. Speaking to the recommendations, Mr. _. Anderson said it. seemed tbat the excess profits tax iv New Zealand pressed jnore hardly than tho excess tax in England, for no provision had been made for loss after the war. If the tax were retoposc.i in Xew Zeala"-i a clause should be added similar to that in the statute st Home—that should the standard of profits fall after the war allowance Tonld be made. The chairman: The committee is suggesting that the tax should be abolished. A member expressed surprise at the statement of Mr. Anderson that such a provision had been made at Home, and Mr. Anderson replied that it was limited to one year after tbe war. *lt would be a difficult matter for anyone in charge of a country's finances to arrange." said Mr. Longuet. The president suggested that the matter be placed before the Auckland M-P.'s St their approaching conference with the Chamber. Mr. H. W. Hudson said the casual —tanner in which the taxes were levied -_n astonishing, and there was a great need for an improvement in the methods in which they were imposed. This matter was surely of sufficient importance to warrant the investigation of a Royal Commission or a special committee of experts, whose duty it would be to submit recommendations before any new taxation was imposed. Taxation in New Zealand was certain to be heavy in the future, and an effort should be made to work out a scientific way of distributing the load. The president was of opinion that this was another matter that could be brought before the M.P.'s at the conference.

The meeting adopted all the recommendations, with tbe addition of tbe suggestion by Mr. Anderson tbat an allowance clause be inserted in future tax proposals.