TAXING BILL.

Press, Volume LX, Issue 18195, 4 October 1924, Page 14

TAXING BILL.

FINAL STAGES IN HOUSE. (mess association telegsam.) WELLINGTON; October 3. To-night the House of Representatives went into committee on the Land and Income Tax Act Amendment Bill. Clause 1 was passed without comment. but clause 2, which increases the special exemption under the land-tax which is deductible from the unimproved a - :;.lue of mortgaged land, created considerable discussion, members setting i'ortli the merits and demerits of UkTclause on the lines of their second reading debate speeches. The discussion continued until p.m., when- ;i division was called on the question that clause 2 should stand as prtrt of the Bill. The clause was ret-uned by -io votes to 18 The Hon. -T. A. Hanaii, Mr Poland and Mr F. J. Rollest-ou voted with the Labour Party. The Liberals voted with tho Government. After tiie supper adjournment the remainder of the clauses were quickly passed up to clause 10. The House then resumed when the Prime Minister brou:ght down by Go-vernor-General's message- . further amendments of th*> Bill. TTiis_ was in clause 11, dealing with unpaid landtax becoming a charge on the land. He explained it was necessary to safeguard this provision in the most careful way, and the Department considered the new clause would do this more completely than the clause originally in the Bill. There was also ari amendment to clause 9 to ensure that holders ef pastoral licenses and small grazing runs should not be liable to both land and income tax. The amendments were agreed to on the voices and the Bill was read a third time and passed. UNUSUAL SITUATION. | ALTERATION NECESSARY. (special to "the press.") WELLINGTON", October 3. An unusual position has arisen in respect to the annual Taxing Bill which has been passed through both branches of the Legislature. The Bill as it was prodnced. provided for a reduction of ten per cent, in the land tax. The Public' Accounts Committee considered the measure, and recommended -that the reduction should be 5 per cent. This was agreed to -by the House, and the measure, when .passed, went on to the Legislative Council. In the Council, the Hon. Sir Francis Bell said on Thursday that it waa not clear from the Bill whether the reduction was to be 5 per cent, or 10 per cent., and yesterday he said it was dear that ten per cent, was the reduction. In- the evening the Council's message formally notifying that it had passed the Bill was received in the House, but in this formal proceeding it was not mentioned that the Bill had been passed as containing a ten per cent, reduction, and not a 5 per cent, reduction. The reduction intended by the House waa 5 per cent., { and there is no doubt that the matter •will be rectified, as it lias been decided to have the alteration which the Honse made in the measure made according to more approved procedure than by resolution of the House. The resolution of the House, it is considered, would hold good in law, bnt is I usual to' make changes in taxation, etc.,- [ upon the 'request ,of, the representative. !of the Crown, and in this instance a Governor-General's Message will be introduced, proposing the reduction of 5 per cent., which the House already has agreed to. The idea is to preserve the position of the Crown in respect to finance.