THE BUDGET

Press, Volume LXX, Issue 21245, 17 August 1934, Page 14

THE BUDGET

♦ PRESENTATION NEXT THURSDAY PROSPECT OF REDUCTION IN j WAGE TAX [From Our Parliamentary Reporter.] r WELLINGTON, August 15. Tentative plans for the presenta- , t;on of the budget next Thursday * evening have been made by the .Minister for Finance (the Rt. Hon. H J. G. Coates). The Customs Amendr ment Bill, which has an important bearing on budget revenue pros- | pects, will be introduced next Tues- ' day evening. Long hours are being woi'ked by Mr Coates and leading officials of the ; Customs Department in completing the customs schedules in the light of > the revisions made since the cus- ' toms resolutions were passed early > last month. Aspects of this ques-! 1 tion were discussed at the recent 1 Government party caucuses, and it i is understood that the item which . evoked most comment related to j . cigarette papers, on which the duty was recently increased. It remains j : to be seen whether Mr Coates has i been influenced by the views of | members on that matter. Issues connected with the budget ' and the Customs Bill are the princi--1 pal topic of speculation in Parliai mentary circles at the moment; but ; it is believed that most of the fore- ' casts are based on "the wish being father to the thought" principle. One suggestion now being heard is that ■ an increase in the number of items subject to the 5 per cent, sales tax ! is contemplated. It is known that the Government . is anxious to reduce the rate of wage tax for unemployment pur- . poses, and what was almost tantamount to a promise that a reduction would be conceded in the spring was ' given early in the session. The pre- ' sent rate is Is in the £, and it is : gathered that the discussions have . centred on the possibility of reducing the levy by 2d, 3d, or 4d. It is suggested that a widening of the scope of the sales tax is in mind, with a view to making a feasible reduction in the wage tax, and there is still hope that part of the "cuts" will be restored to the lower-paid members of '.he public service. An informal conference to consider the Government superannuation fund was held this week, and it is expected that '.he budget will indicate whether the Government proposes to take up again legislation on the subject, which has been before Parliament twice without j reaching the Statute Book. i ________________ j