INTEREST BILL.

Auckland Star, Volume LXII, Issue 95, 23 April 1931, Page 7

INTEREST BILL.

FEDERAL MEASURE. Proposed Board to Regulate Federal Rate. INCOME TAX AMENDMENT. (United P.A.—Electric Telegraph—Copyright) CANBERRA, April 22. The Bank Interest Bill, which is now before the House of Representatives, provides for a board of five members, who shall make recommendations from time to time to the Treasurer regarding the maximum rates of interest payable within the Commonwealth on bank deposits or advances by way of loans or overdraft, and also regarding the maximum discount rates to be charged. Speaking on the second reading of the bill, the Leader of the Opposition. Mr. J. G. Latham, said there was no precedent for such a bill, which was dangerous. He added that the present position was due entirely to lack of confidence in the Government. Mr. Scullin replied that the burden of interest to-day represented 2.3 per cent of the national income. The flight of capital had not been so great as had been represented. Anyhow, the Government had a reserve power by which it could absolutely stop the flight of capital and it was watching the position carefully. The debate war- adjourned. N - A bill to amend the Income Tax Act and to impose a graduated tax on the salaries of Civil servants above £2-30 a year was introduced this afternoon into the House of Representatives. The Treasurer, Mr. E. G. Theodore, said it was proposed to collect a tax at the rate of .'3/6 in the pou..d on interest accruing from loans, aggregating £4.33,000,000. The tax would be deducted from interest when it was payable. There would be rebates on loans which were already subject to State taxation, and practically all loans issued before 1923 would be exempt. Mr. Theodore estimated that about £1.000.000 would be saved on the salaries of Civil servants. The debate was adjourned.