"PAY AS YOU GO"

Auckland Star, Volume LXXIV, Issue 219, 15 September 1943, Page 3

"PAY AS YOU GO"

New British Income Tax

Scheme

AFFECT 7,500,000 WORKERS British Official Wireless RUGBY, Sept. 14. What is believed to be a workable "pay as you go" income tax scheme has been drawn up and is reported to have been accepted by the Chancellor of the Exchequer. A House of Commons announcement on the subject is expected soon after Parliament reassembles. Sir Kingsley Wood intimated in July that he favoured a change in the present system if a satisfactory scheme could be evolved.

The inland revenue authorities have been working on alternative plans, and it is understood that the present scheme will apply to all the 7,500,000 manual weekly wageearners. "Forgiveness" provision may have to be included to avoid hardship of wage-earners being faced with the new "pay as you go" deductions plus tax already owing.

The proposal is that arrears owing may be forgiven on a sliding scale, based on the taxpayer's earnings. In any case the flow of revenue is not to be interrupted. Where wages with overtime fluctuate considerably, it is expected the amounts will be averaged weekly and adjustments will be made in the form of rebates or extra payments by taxpayers at the end of the year. It is not expected the scheme will apply at present to any but manual weekly wage-earners. It will be "on trial," and, if successful, may be included in the Government's post-war plans to apply to the other 5,000,000 taxpayers as well.