TAXATION TO BE REDUCED

Bay of Plenty Times, Volume LII, Issue 8629, 9 July 1924, Page 6

TAXATION TO BE REDUCED

statement by prime minister Reductions of taxation totalling % t 1 iont l-I.oOU.CCO are proposed by the Prime Minister. In an interview _in Wellington a few days ago to a New Zeal aml Herald reporter be said h* would like these to include concessions in the duties on tobacco and m rax - way freights and fares. The tenor of Ins remarks also indicated that he proposed to make concessions m company and land taxes. Mr Massev was asked to ampiiP n statement in regard to remissions of taxation made at the Winter hhow banquet. “J indicated at the banquet that if F got the House in a good humour.’’ lie said, ‘T would reduce the taxation on the country by an amount not perhaps as great as the surplus of a million and three-quarters, but something approaching that amount. “Can yon indicate the nature of the remissions you propose '* Mr Massey was asked. “That point needs developing.” ho replied.“ What we term the ordinary man does not pay income tax. He has exemptions with a family to £‘4do per annum. Bfnt the presort system of taxation, under which we work and which I believe it is impossible to avoid when the man -who is handling comparative! v large .sums of money that is, the merchant or the big company is called on to pay heavy taxation, he naturally passes it on to the people with whom he does business. Many of these people, of whom a good proportion are country people, have not been able to employ labour that is necessary to develop their properties, and keep them up to the full stage of production.’’ Mr Massey went on to say that a recommendation of the 1052 Taxation Committee, specially dealt with the taxation on land-holders in this class.

The report was unanimous in recommending that discretion should he given to the commissioner by legislation to remit the whole or part of land tax, levied on rural lands which tiurngh ■worked in a proper and workmanlike manner, did not produce sufficient after deducting expenses of working (including local rates, but not including interest on mortgage of land or stock, or interest upon the value of such land and stock if unmortgaged) to pay such tax in whole or part, “Dp you propose that there will he any further remission of company taxation?'-

“Companies will benefit the .same as anyone else,'’ Mr Massey replied. “They will benefit, to a greater degree if you regard the company as a unit, because the greater the amount of income, the higher the taxation is." “You remitted indirect taxation last year in the removal of tea duty. Do you contemplate making further remissions that will make for a cheaper Irreakfast t a bl e f ’ ’ “Tell me what article on the breakfast table we could make cheaper by a reduction in indirect taxation/' replied the Prime Minister. “There is ■only oatmeal, and we shall probably not have to import oats again for years.” “There are two items that affect the people on which I wen Id like to make remissions. I would like to reduce freights and fares on the railways, jaid T would" like to reduce the tariff on tobacco." The duty on tobacco was raised generally in the 1921. tariff from 3y6 to 4/8 and 4/10 per lb in the case of plug and cut tobacco, but there was a considerable increase from 3/G to 10/ per lb on fine cut tobacco suitable for the manufacture of cigarettes. It was explained by the Government at the time the tariff was before the House that the purpose of the increase to 10/ was to get another £IOO,OOO revenue from that item alone. The heavy increase in the Customs revenue for 1923-24, which realised £7,238,215 as compared with £6,032,292 for 192,223, which was the financial, year following the introduction of the amended tariff, is apparently the justification for Mr Massey’s suggestion for a remission of the duty on tobacco. “As I have indicated in my public addresses recently, it is chiefly in luxuries that customs revenue has grown to such large dimensions," concluded the Prime Minister. He remarked that it was practically a present to him as Minister for Finance. Articles that thus helped to swell the revenue were motor vehicles, spirits, silks and expensive articles of clothing. “As to these proposals," said Mr Massey, in conclusion, “it all depends on the temper of the House."