NO RELIEF

Auckland Star, Volume LXXV, Issue 182, 3 August 1944, Page 6

NO RELIEF

DOMINION TAXES

BUDGET FORECAST

(By Telegraph.—Parliamentary Reporter.) WELLINGTON, this day. The Budget to be presented by the Minister of Finance, Mr. Nash, in the House of Representatives tonight will show that New Zealand will not require during the current year for war expenditure as much as was wanted last year, when the total reached the record point of nearly £153,000,000. This does not necessarily mean that there will be any alteration in taxation, nor is it likely that loan requirements will be reduced. However,- the Budget is not expected to be without some benefit for at least a section of the community. It is probable there will be an amendment to family benefits, both in the way of lifting the present payment per child, which is 7/6 weekly, and also by raising the income qualifying level of £5 5/ weekly. Huge Cost of War The Minister of Finance will review the position of war finance. The total cost of the war to March 31 last amounted to close on £400,000,000. Details of the new Victory Loan are expected, and this is likely to be the largest sum yet asked for within. New Zealand in one amount. Last .year the objective of the Liberty Loan was £35,000,000, and approximately £40,000,000 was raised. As in previous Budgets the Minister will give details of the Memorandum of Security Account, under which the United Kingdom makes advances to the Dominion for the maintenance of New Zealand forces overseas, and also details of the lend-lease position. New Zealand's objective throughout the war has been to meet war expenditure as far as possible from taxation to the extent of one half of the total, and the Budget is likely to disclose that this goal has almost been realised. As to the repayment of war loans, the Budget, it is understood, will explain the procedure which provides for the setting aside of moneys 'or redemption. Since 1925, when this system was inaugurated, £30,000,000 has been repaid to investors. Dealing with social security, the Budget is likely to indicate a siightly larger transfer this year from the Consolidated Fund than was. the case last year, mainly for the reason that the number of beneficiaries has inI creased. The "pay as you go" system of income tax payment will be mentioned. It is not thought that any positive decision will be disclosed, but it is more likely to indicate that the Government intends taking some action in this matter during the present session. An adjustment of accounts is likely to be announced with the object of showing more clearly in terms of New Zealand currency what New Zealand owes. Sterling debt, therefore, will be shown at the New Zealand currency rates. Other interesting phases of the Financial Statement are likely to relate to the negotiations for the long-term agreement with the United Kingdom Government for the sale of New Zealand primary-produce, and the implications of the 'International Food Conference, the United Nations Relief and Rehabilitation Conference, the International Labour Office Conference and the'recent Monetary Conference. The imperative need of maintaining the Government stabilisation policy is also likely to be stressed. Sales Tax Reduction Unlikely There have Tseen. expectations that last year's buoyant revenue and improved war situation might have justified a reduction in the sales tax, but this is not likely to be the case, nor does it appear possible that the Government at this stage is contemplating any variation hi the exchange rates. There have also been persistent suggestions that service personnel stationed in New Zealand, at present : not subject to taxation, would be . brought into the net, but these sug- ; gestions appear to be ill founded. It is probable that Mr. Nash will strike the note that the war situation has not yet arrived at a stage when any- j thing less than the full, concentrated > effort of all is still needed to achieve • the victory now in sight. :