TAXATION COMMISSION.

Auckland Star, Volume LV, Issue 114, 15 May 1924, Page 12

TAXATION COMMISSION.

FARMERS' "UITION VIEWS,

EV3DEKCE AT WELLINGTON.

IBy Telegraph.—Press Association.)

WELLINGTON, Wednesday.

The Wellington. sittings of the taxation Commission continued to-day. Evidence on behalf of the Farmers' T?nion as a whole was tendered by Mr. W. B. Mathieson, president of the WaiTaiapa branch, and ex-treasurer of the Dominion union. He submitted the following:— (1) Wo are of opinion that land tax, being a form of capital levy, is bad in principle, being a class tax. We are -in favour of its abolition and that incon.e tax should apply to incomes from all sources.

(2) We consider that in the event of the land tax being continued, the special exemption should be raised to £3000, seeing that the income tax exemption is £300, which capitalised at 10 per cent is £3000. This suggestion for the alteration in the exemption is based upon a 10 per cent profit on £3000 invested in land.

(3) We consider that the present system of debenture taxation should be amended so as to make the levy at the same rate all round, giving no advantage to local bodies or any other section of the community.

(4) Seeing that (a) during past years the farmer borrower lias been penalised tinder the present system, (b) the prosperity of the Dominion so largely depends on the primary producer, (c) the settlement of unoccupied lands is so vital, we consider that if any differentiation be made it should be in the direction of encouraging investment in rural securities.

It waa added by witness that there was a strong feeling in the Farmers' TJnion that company taxation was thoroughly unwise and should be either diminished or abolished, but no decision had been arrived at as to the percentage of immediate reduction favoured.