INCOME TAXATION.

Auckland Star, Volume LVI, Issue 209, 4 September 1925, Page 8

INCOME TAXATION.

NEW SCALE ANNOUNCED.

GRADUATION, FROM £300.

I N,O CHANGE IN DEBENTURES.

(By Telegraph.—Parliamentary Reporter.)

WELLINGTON, Thursday. The Annual Land and Income Taxing Bill was introduced by Governor's Mes" sage to-night. The Minister of Finance explained that the land tax remained as last year, and, in accordance with the Budget statement, reduced the minimum rate of income tax from 8d to 7d in the £, and the maximum from 4/10 to 4/6. The bill was read a" first time. The bill contains the following taxation provisions: — Land Tax. CI) "V\ here the unimproved value on ■which land tax is payable does not exceed £1000. the rate "of land tax shall, save as otherwise provided in this part of this schedule, be Id for every £1 thereof.

(2) Where the unimproved value on which land tax is payable exceeds £1000, the rate of land tax shall be Id for every £1 thereof, increased by one twenty-thousandth part of Id for every fl in excess of £1000. but so as not to exceed in any case the rate of 7 17-20 d in the £1.

(3) From the land tax computed in accordance with the foregoing provisions there shall in every case be deducted an amount equal to 5 per cent thereof. Income Tax. (1) On income tax assessable under cub-section 4.3 of section 116 of "The Land and Income Tax Act, 1923," and derived from debentures issued before August 28, 1923, the rate of income tax shall be 3/ in the £1, and in the case of debentures issued on or after August 28, 1923, 4/0 in the £1. (2) On income assessable under subsection 3 of section 118 of "The Land and Income Tax Act, 1923," and derived from debentures issued before August 28, 1923, the rate of income tax shall he 2/G in the fl, and in the case of debentures issued on or after August 28, J923, 4/0 in the fl.

On the taxable income of all taxpayers other than those referred to in the preceding clauses, the rates of income tax shall be:

(a) Where the income on which tax is payable does not exceed £300, 7d for jevery £1.

(b) Where the income exceeds £300, •but does not exceed £6000, 7d for every £1, increased by two three-hundredths of a penny for every £1 in excess of £-mo. . .

(c) Where the income exceeds £6000, 3/9 for every £1, increased by one threehundredths of a penny for every £1 in excess of £6000, but so as not to exceed in any case the rate of 4/6 in the pound. The income tax payable by any taxpayer as hereinbefore.provided shall be reduced by 10 per centum of so much thereof as is levied in respect of earned income, provided that if the earned income of a taxpayer for any year exceeds £2000, the reduction provided for by this clause shall be made only in respect of the sum of £2000.