UNEMPLOYMENT TAX.

Bay of Plenty Times, Volume LX, Issue 10827, 26 March 1932, Page 3

UNEMPLOYMENT TAX.

GENERAL LEVY REMAINS. The full effect of the Government’s special unemployment taxation proposals does not appear to be generally understood. In some quarters the impression has been created that the flat levy of £1 a year has been abolished, but this is not the case. The levy, which bears the official title of the “General Unemployment Levy,” remains, and is still payable by quarterly instalments on. the first day of the months of February, May, August and November.

The so-called wages tax, now proposed to be increased to Is in the £, is a charge, described in the Act as “The Emergency Unemployment Charge,” on salary, wages and other income. Under the provisions of the new bill the term “wages tax” becomes a. misnomer. The reason is that hitherto the special tax of 3d in the £ on incomes derved from any source other than from wages and salary applied to only two-thirds of such income. The bill seeks to impose this taxation —one shilling in the pound as now proposed—to the whole of the income. In addition women deriving income from “other sources” are now to have an exemption of only £2O.

In short, if Parliament passes the bill as framed, the taxation to be paid will be as under: General levy. £l.

Emergency uuemplymeut charge, one shilling in the pound on wages and salaries.

Emergency unemployment’ charge, one shilling in the pound additional on the whole of income derived from other sources than salary or wages. Women, of course, are exempt from the payment of the general levy of £l.