TAX REDUCTION.

Auckland Star, Volume LXVI, Issue 229, 27 September 1935, Page 8

TAX REDUCTION.

PLEA BY MR. HARRIS

ADVICE TO GOVERNMENT* BOLD MOVE ADVOCATED. (By Telegraph.—Parliamentary Reporter.) WELLINGTON, Thursday. Surprise was expressed in tlio House of Representatives this afternoon by Mr. A. Harris (Independent, Waitemata) when speaking in the Financial Debate, that the Government had not attempted to reduce taxation apart from tlio unemployment emergency chargc. He did not know whether it was wise for tho Budget to havo been devoid of window dressing. The outlook had been black, but the country had came through and the Government was entitled to some of the credit.

Lust year tlio Finance Minister had promised taxation reductions and lie believed the present finances made such reductions possible. He did not know of any previous Government that had come through a period with a surplus that had not proposed to reduco taxation. "I think tlio Minister of Finance might have been bolder," ho said, "and have taken tlio risk of anticipated increases in revenue for the coming year and done something to ease the heavy taxation burden which the country cannot carry indefinitely." A country too heavily taxed could not recover as quickly as a country that had a lighter load to carry. Therefore, the Minister should havo carried out his promises of last year. Estimated Surplus. The Budget estimated the surplus of the current year at £13,500, but that amount was bound to be largely exceeded. It would probably exceed £1,000,000. Last year the surplus was anticipated as £8000, but it turned out to bo £1,620,498. It was stated that the increased revenue was "fortuitous." But that was tho case every year. Something always turned up. He suggested to the Minister that it was not yet too late to announce some reduction by anticipating next year's surplus. An announcement to that effect would havo a psychological effect on tho people and produce optimism.

Mr. Harris said tho Minister could take off the primage duty of 3 per cent levied on goods fron\ the United Kingdom "otherwise not' dutiable." New Zealand was committed to tho remission of that tax in more ways than one. The Ottawa agreement was one. Thero was a definite undertaking that as soon as practicable the 3 per cent primage duty would not be increased but would bo abolished as soon as possible. It was a solemn pledge. He did not- know what tho British manufacturers would think when 1 they realised that that duty remained when the country had a surplus. New Zealand was probably the highest taxed country in the world. He was sure the public expected tho Budget to propose tax reductions. Unemployment Tax Reduction. A further reduction in the unemployment tax was also advocated by Mr., Harris. When the 2d was taken off last year a greater amount of tax was collected becauso of the improved conditions, and the same would result again if a further slice were taken from that tax —a reduction greater than was proposed. "If we have not turned the last corner it is not very far away," concluded Mr. Harris.