! GENERAL TAXATION BUDGET FORECAST Parliamentary Reporter WELLINGTON, this day. No general reductions in taxation are like!y to be announced in the Budget, which will be presented to the House of Representatives this evening by the Minister of Finance, Mr. Nash, but it is expected that the Minister will promise to make a review of taxation during the Current year. However, it is likely that assistance will be given to new industries in the way of special depreciation allowances on plant and buildings. Although there is no general taxation relief, it is confidently expected that the Minister of Finance will
disclose increased benefits under the
Social Security Act along the line of ensuring a minimum family income under given circumstances. These benefits are likely to apply to invalidity, sickness, unemployment, widows, age, miners and war veterans' payments. It is not considered likely on the present evidence that the actual family benefit, or minimum wage rates, will be announced in the Budget, but it is anticipated that the improved benefits previously mentioned will be payable some time--during the present year. The public will probably have to wait until legislation is introduced to obtain details of the various improvements. For the time being it is not expected that there will be any alteration in the present family benefit. The representations made by industry for some relief are likely to be met to some extent, at least, by an extra depreciation allowance to assist in the setting up and development of new industries. This possible relief will probably be spread over a short period of years. Changes in the Social, Security and National Security taxes are unlikely at present, but, if the contemplated programme in connection with the minimum family income in approved by Parliament, then automatically
that will mean the transfer of a larger sum from the Consolidated Fund to the Social Security Accounts. This transfer last year amounted to £4,500,000. National Development National development" is likely to be a prominent feature, of the Budget. It will embrace such features as housing, electric supply, land for settlement and railway improvements. The appropriation in this direction is expected to be fairly large. While a little more information is expected to be given about the payment of war gratuities to discharged New Zealand Service personnel, it is unlikely that the complete scheme for their payment will be announced i
in view of statements that have been made by Mr. Nash. No doubt, consideration is being given to a scheme which will not only protect the interests of servicemen, but will also be in the interests of the economy of the country by the avoidance of any tendency towards inflation.
It is also unlikely that more than general reference will be made to the taking over by . the State of the private shares in the Bank of New Zealand and of the Dominion's internal airways, as, again, these are matters which must be the subject of legislation this session.
A problem which has been concerning friendly societies has been the financial burden involved in the payments of death benefits through members dying on actiye service. It is anticipated that some substantial relief to these organisations will be announced in the Budget. As usual the Budget is expected to contain the customary review of the Dominion's finances, and one of the features is likely to be a disclosure of the striking contrast between the total revenue of 1936 and that of the year ended March 31 last. Revenue for the present year is expected to be fairly buovant. Thr> figures relating to the" balance of trade are likely to contain information which has not appeared in a I Budget for some time.
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NO RELIEF, Auckland Star, Volume LXXVI, Issue 187, 9 August 1945
NO RELIEF Auckland Star, Volume LXXVI, Issue 187, 9 August 1945
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