INVESTIGATION OF P.A.Y.E.

Press, Volume XCII, Issue 27736, 13 August 1955, Page 8

INVESTIGATION OF P.A.Y.E.

EXPECTED ACTION BY MR WATTS (New Zealana Press Association) WELLINGTON, August 11 Further consideration is expected to be given to the possible introduction of a “Pay as you earn” system of taxation once the Budget debate is concluded in the House of Representatives and when the Minister of Finance (Mr J, T. Watts) can be relieved of soma of the pressure of business in the House. Present indications are that there little prospect of an early introduction of a P.A-Y.E. system, but further investigations into its possibilities ana the results achieved in countries g which it is in operation may shortly be intensfied. It is expected that when the debate is out of the way, Mr Watts wjll again call together the Cabinet sub-commit-tee which has been appointed to go into the matter of P.A.Y.E. taxation. Preliminary investigations have shown that the introduction of a new system would be complicated, particularly in view of New Zealand’s system of social security taxation, which, it » considered, would have to be amalgamated with the general system of income tax were the P.A.Y.E. scheme to be adopted. There are indications, too, that a time of over-full employment is n® l regarded as the most opportune which to make a radical change, <* the nature suggested, in the basic taxation procedures. It has already been announced that it is the Government’s intention to have full discussions with various national organisations which would interested in the adoption of a scheme of P.A.Y.E. taxation. Such orgamsj' tions as Chambers of Commerce, the Federation of Labour, Federated Farmers, and the Manufacturers’ Federation will be asked for their views. It is considered that the Government would be bound to give reasonable notice of its intention before e®' barking on a fundamental change, an« for that reason alone there is unlike*? to be any immediate adoption o* P.A.Y.E. taxation.