TAXATION.

Press, Volume LIX, Issue 17806, 4 July 1923, Page 10

TAXATION.

FURTHER REDUCTION ANNOUNCED. FINANCE MINISTER'S BUDGET PROPOSALS. In the Financial Statement which ha delivered in the House of Representatives last night, the Finance Minister (Mr Massey) made the following announcement : It has always been recognised by me that the retention of the admittedly high taxation necessitated by the war is pressing on enterprise and retarding development, and is one of the factors in the increased cost of living. Financial pressure, however, has been such that I have not been able to afford relief to anything like the extent I believe to be necessary, although last year land and in-come-tax concessions amounting to £929,100 were granted. With the improvement that has taken place I am pleased to announce that in conformity with the policy of the Government further substantial reductions will be made this year, including the remission of income-tax on. land which was imposed for war purposes and in addition to the ordinary land-tax. After making allowance for the increased expenditure on account of pensions, subsidies, interest on public debt, as well as for the increases in salaries and wages due to the increased cost of living, it is intended to get back as soon as possible to the rates of taxation which were in operation prior to tho war. Conditions have altered to such an extent that the whole system of taxation requires revision. lam considering legislation which is designed to ensure a more equitable distribution of the burden, but in view of the necessities of the situation I have thought it better to concentrate on reductions that will give immediate relief and at the same time afford recognition of the economic principle that each taxpayer should contribute according to his ability. Considerable adjustment has, however, 'been taking place, and th® taxation per head of tne population, including Maoris, has fallen from £l7 14a 4d in 1921 to £ll 17b 8d at the 31st March, 1923.