TAX PROSPECTS.

Auckland Star, Volume LXIII, Issue 98, 27 April 1932, Page 7

TAX PROSPECTS.

LAST YEAR'S RETURNS.

HEAVY DECLINE CERTAIN.

WILE RATE BE INCREASED ?

IMPOST ON BACHELORS.

(By Telegraph.—Parliamentary Reporter.)

WELLINGTON, this day

Saturday, May 7, has been tentatively fixed by the Prime Minister as the date on which the present emergency session of Parliament will end. "We hope to be able to complete the business of this session by Saturday week," he said last night, when discussing the outlook with the "Star" representative.

Asked whether it was intended to prorogue Parliament and postpone tlu main session until October, Mr. Forbes said that matter had still to receive Cabinet consideration. So far no decision had been reached on the question of dispensing with the main session, which normally would open in June.

For some time past an impression hju been held in Parliamentary circles that the Government, finding that the emergency session had taken up more time than anticipated, and in view of the holding of the Ottawa Economic Conference in July, will take advantage of the opportunity to deal now with major questions outside the emergency measures; such, for instance, as taxation. Mr. Forbes' reply to the specific question to-night encourages the belief that Cabinet is still questioning the wisdom of interfering with ■ taxation rates until the Tax Department is in a position to announce in precise figures the total returns of income for the last financial year, on which returns tin. taxation assessments will be issued. Possible Lowering of Exemption. It is a certainty that last year's income tax returns will show a heavy decline on those for the year which ended on March 31, 1931, and in order to ensure approximately the same yield to the tax collector an ill-round increase in the rate of taxation will be needed, to say nothing of a further lowering of the statutory exemption and the possible deliberalisation of other exemption items. In this connection, too, the prospect of the introduction of a bachelor tax is not a remoto one. In view of the rush of other business, legislation proposing the imposition of a 2i per cent sales tax has been temporarily placed on one 6ide, and at the moment it is uncertain whether this bil! will be submitted to Parliament this session. In reply to another inquiry, Mr. Forbes said a finance bill probably would be introduced on Friday. It would be the final major bill of the session. There were one or two other measures of minor importance to be submitted. It was proposed to seek urgency to-day for the passage of the Customs Bill arising out of the trade treaty with Canada, and of the remaining sections of the National Expenditure Adjustment Bill. Rent and Interest. Quite a number of amendments were being submitted to the clauses dealing with interest, rates and rent reductions, but these would not alter the purpose of the bill, namely that there should bo an all-round reduction of 20 per cent The amendments would be in the direction of removing anomalies and preventing injustices.