TAXATION DEBATE.

Auckland Star, Volume XLVIII, Issue 208, 31 August 1917, Page 4

TAXATION DEBATE.

CRITICISMS AND SUGGESTIONS, j EPIC IN DRAUGHTSMANSHIP. (By Telegraph.—Parliamentary Reporter.) WELLINGTON, Thursday. The second reading of the Finance Bill was moved this afternoon by Sir Joseph Ward, who reserved his further remarks till he replied to criticism. Before the debate started an amendment wae brought down which, the Minister explained, was to enable company directors to invest money in the war loan without fear of prosecution by anybody for doing so. It was proposed, also, to give similar power to local public bodies.

Mr. Wilford opened discussion by referring to the bill as being almost an epic in legal draughtsmanship, so comprehensive was it. He complimented the Minister upon the proposal to relieve small shareholders in companies from being subjected to excessive taxation, and he also congratulated the Government on' the clause exempting pay earned by naval and military men beyond New Zealand from income tax. THE CIGARETTE TAX. The member was outspoken in his criticism of the method of collecting the now tax on cigarettes. He pointed out that of th£ extra penny now being paid for a packet of cigarettes only nine-twenty-fifths went to the Government, as tax, -vvhile sixteen-twenty-fifths went into the pockets of merchants. The public did not mind paying an extra penny, out did object to most of it going to swell the profits of vendors, when its purpose was for war money. He believed the increased price of cigarettes was worth £ 100,000 a year, and he urged the Government to print stamps or tags of some sort and make it a penal offence for a packet to be sold without a penny stamp being cancelled by the' Customs. By this means the Government would secure the full amount of a penny tax, instead of about half. No merchants or shopkeepers should be allowed to make a profit out of the war tax. (Hear, hear.) Mr. Wilford also contended that it would have been far better to tax picture shows through the films, while he considered amusement companies should nl=o have been got at by way of income tax. BACHELOR TAX SUGGESTED. Mr. Anstey expressed the opinion that the Government" was making a mistake in land and income tax. He advpeated a land and mortgage tas at a flat rate, and graduated revenue, too. He also i believed there should be a price tax, as, the contended, profits made clearly because of war conditions should bear their share of war expenditure. If the revenue tax proposals in the bill were carried out without modification he was certain serious hardship would he ifirposed on small producers. The member strongly urged the imi position of a bachelor tas. TAXATION ON TEA. ' Dr. Newman protested against the tea ; tax, as he believed the Treasurer, if well : backed, would come to Parliameat.. next ' session with a shilling tea tax. TAX ON AMUSEMENTS. The amusement 'taa/'WjMi*'sixpenny tickets e*empte3, met-with - his ; approval-' •Mr. Isitt expressed the opinion that the tax on picture show tickets might have been but he was glad to see the principle introduced. LAND VALUATION CRITICISED. Mr. Poole expressed the opinion that it was a scandal in some places how ridiculously low very rich land was valued for taxjng purposes. The member, in supporting the suggestion by the member for Hutt regardma the tax on cigarettes, suggested that if the Minister imposed a straight-out tax of 8/4 per 1000 cigarette? in packets of ten he would gather up the whoje taxation to be demanded from the people, whereas under the present proposal only a percentage would go to the Government. Mr- Poole deplored the necessity to put a tax on tea, and urged a heavier tax on imported wines and spirits. He expressed the belief , that, generally, the bill was aimed at getting taxation on a fair and just basis. Mr. McCombs moved the adjournment I of the debate at 11.15 p.m.