FORECAST OF BUDGET.

Press, Volume LXVII, Issue 20302, 30 July 1931, Page 8

FORECAST OF BUDGET.

DRASTIC TAXATION. 1 FIVE PER CENT. PRIMAGE. DUTIES ON TEA, SUGAR, BEER, PETROL. [Kiton Our Paeuamentauy Rju-oiitku.] WELLINGTON, July 2D. Mr Forbes will read his Financial Statement in the House of Representatives to-morrow evening. It ■will almost certainly eclipse the "Black Budget" of last year in tlic drastic character of its proposals. Onco again heavy additional taxation will form tho main fcaturo of Mr Forbes's plan to balance the national accounts, and it is understood that he intends to imposo additional Customs duties which alone are expected to furnish £1,000,000 in revenue. It is believed this year's Budget will bo the most controversial document placed before Parliament in recent years, and there can be no doubt that from now on the session will be particularly eventful. Tariff Revision. Imports will probably bo affected considerably by revisions in the tariff. There is a suggestion that the primage duty will be restored, and mention has been made of an impost up to as high n,s 5 per cent. There is every likelihood of a fairly heavy increase, probably of 3d per gallon, in the beer duty, and although there is little doubt that spirits will also be affected, it is thought the increase in duty in respect of them will not be so marked in comparison., A duty of Id per lb is likely to be put on to sugar, and 3d per lb on to tea. Income Tax, As previously stated, it is likely that incomes exempted from income tax, will be reduced from £3OO to £250, and that there wilt in future be no allowance for children in the case uf a man receiving an income over £4OO. Added to this it is understood that the surtax on the higher incomes will be increased to 25 per cent. Every possible means of finding additional revenue has been explored by Cabinet. It is understood that the Budget contained a provision for a further 5 per cent, reduction in public servants' salaries and wages, but thai this was dropped when it was decided to imposo the emergency wages and income tax for unemployment purposes. Also it is believed that there was r strong suggestion that a bachelor and spinster tax should be levied, but it is not known whether this lias been proceeded with. Suggestions were also made that tobacco should be more heavily taxed, but hero again tho decision of Mr Forbes is difficult to ascertain. Petrol Duty. Huggestions havo already been made that tho oxisting duty on petrol, which now stands at (id a gallon, will be increased. Those interested in the motor industry and motoring organisations anticipato some increase, probably -d per gallon, but in view of the fact that the Government is now conducting a searching investigation into the handling of petrol by various importing and vending firms throughout the country, with particular attention to the prices charged and handling costs, the companies themselves might be called upon to bear the brunt of the extra burden if the Prime Minister sees fit to impose it. Tho country will await with unusUal interest the appearance of what must be a bad Budget for every man, woman, nnd child in the Dominion. Possible Outcome. Tho economic state of New Zealand and the attitude of the Government during tho past six months leave no doubt that drastic proposals have been undertaken. Mr Forbes has stated that tho taxation proposals will test Party feeling in the House. Judging from tho forecast in the lobby this evening, the document- will probably strain Party affiliation to the uttermost limit, if not to .the breaking point altogether.