TAXATION IN N.Z.

Press, Volume LXXXIII, Issue 25247, 28 July 1947, Page 3

TAXATION IN N.Z.

CHAMBERS OF COMMERCE RECOMMENDATIONS !

ROYAL COMMISSION SUGGESTED

(P.A.) WELLINGTON. July 26. A joint taxation committee operating under the aegis of the Associated Chambers of Commerce of New Zealand decided to make representations to the Minister of Finance (Mr W. Nash) on various taxation matters before the bringing down of the 1947 Budget. The committee considers the best encouragement for a maximum endeavour by employers and employees alike would be by removing the brake of unduly heavy taxation and effecting substantial reductions in income tax.

Apart from the weight of taxation, said the statement issued by the committee, there were anomalies in the taxation law which still further retarded productive efforts. All taxpayers were affected in view of the fact that the special income tax exemption was limited to £l5O, allowed in respect of amounts contributed by taxpayers to superannuation schemes, life insurance policies, and the like. All amounts paid by way of social security charge should qualify for exemption. The committee favours the abolition of the 33 1-3 per cent, super tax on socalled “unearned” income. It is also concerned with the provision in the Finance Act, 1942, about the inclusion of non-assessable income to arrive at the amount of tax payable." The fourth anomaly on which the committee intends to make representations is the taxation income derived from “proprietary incomes.” The committee considers that a graduated system of income tax on, companies should be given the consideration of a Royal Commission with a view to the adoption of more just, equitable methods of taxation. A Royal Commission should investigate and report on all New Zealand’s land and income tax, laws,.. the statement concludes.