WHAT THE TAX, YIELD MEANS.

Auckland Star, Volume LXVI, Issue 35, 11 February 1935, Page 6

WHAT THE TAX, YIELD MEANS.

When the taxation yield is analysed, the apparent buoyancy of the revenue, to -which Mr. Coates has referred in issuing figures for the first.nine months of the financial year, is found to arise largely from sales and Customs levies. That is, the State is benefiting from the increased turnover of business. So far, the gain from these two levies, taken together, as compared with the previous year, has amounted to more than a million. The otherprincipal increases are in stamp and death duties and income tax, which together add another million. Over the balance of the taxation field there has been little change, though a slight upward tendency is discernible. The Customs increase, which is the largest individual improvement in the Treasury receipts, reflects the revival of import trade. The sales tax is helped by the same influence, but it also receives an impetus from internal business recovery. It is encouraging to note this evidence of improving conditions, but it is a pity that the Government is making such a heavy levy upon it—in fact, virtually applying its foot to the brake as the trade omnibus is struggling on an uphill grade. Recovery cannot be speedy under such a handicap. That it is so persistent is proof of the strength of the forces behind it, and even a moderate measure of relief in taxation would allow these forces to he more effective.