TAXATION BILLS PASSED

Press, Volume LXXII, Issue 21907, 7 October 1936, Page 10

TAXATION BILLS PASSED

LEGISLATIVE COUNCIL DEBATE

CRITICISM OP PROPOSALS

(PRESS ASSOCIATION TELEGRAM.)

WELLINGTON, October 6,

In the Legislative Council this afternoon the second reading of the Land and Income Tax Amendment Bill was moved by ■ the Hon. M. Fagan, leader of the Council, who said the bin was necessary to allow the Government to put its budgetary proposals into operation. Pension increases would cost, he said £1,800,000. It was proposed to raise £1,000,000 from income tax and £BOO,OOO by graduated land tax. The Hon. V. Ward said he regretted that taxation had been increased. The Hon. H. Connelly suggested that the Government might consider tax* ing the reserves of companies in excess of paid-up capital. There was need for an enquiry into huge reserves that wet's being created. The Hon. E, R. Davis said he regretted the increased taxation. Business initiative would be hindered. He cited one company which, as a result of the legislation, would have 9s 5d m the £ to divide among shareholders, compared with 13s 7d last year. The Hon. Rangi Mawhete said the graduated land tax might cause hardship among the Maoris. The Hon. J. Alexander said people would not oppose taxation if they knew ii was for defence. He hoped defence taxation would be increased. The Hon. C. J. Carrington said increased taxation must mean high prices through increased costs of production. , * The Hon. W. M. Mclntyre made a plea for the insertion of a hardship clause in the bill. The Hon. H. A. Russell opposed the graduated land tax. Replying. Mr Fagan said that com*, pany taxation was greater in 1921 than it was under the bill. The graduated land tax placed no hardship on anyone who owned land in 1931. The bill was read the second time on the voices. The Land and Income Tax (Annual) Bill was also read a second time on the voices. Both bills were put through all stages and passed. The Council adjourned at 4.30 p.m. till Thursday.