Opposition Withdraws From Tax Bill Debate

Press, Volume XCVIII, Issue 29002, 17 September 1959, Page 16

Opposition Withdraws From Tax Bill Debate

(New Zeatana Press Association)

WELLINGTON. Sept. 16. No Opposition members spoke when the second-reading debate on the Land and Income Tax (Amendment) Bill was wound up in the House of Representatives this afternoon. The bill was given its second reading. Replying to the debate, the Minister of Finance (Mr Nordmeyer) said he was disappointed the Opposition had withdrawn from the debate on “this very important tax bill.” Mr Nordmeyer said he could not conceive of a P.A.Y.E. scheme which would not take some time to settle down, and it was inevitable that some anomalies would reveal themselves. “It is not the number of anomalies the House should concern itself with,” said the Minister, “but their effect on the taxpayer.” The Government had considered it desirable to give the scheme a full year to operate before introducing amending legislation to correct anomalies. “The course we have taken is a wise one.” said Mr Nordmeyer “No Promise” Mr Nordmeyer, referring to Opposition claims that Labour had promised not to increase taxation, said:—“We did not make such a promise. At no point in our policy, platform, or manifesto was it said that Labour would not increase taxation.” The Leader of the Opposition (Mr Holyoake). That makes it 10 times worse. Mr Nordmeyer said it was quite unfair to the Prime Minister to take out of its context a statement made by Mr Nash in connexion with the

P.A.Y.E. tables on the night before the election. Mr Holyoake: Don’t make me laugh. Mr Nordmeyer also challenged Opposition claims that the National Government had reduced the rates of taxation eight years running. “That is not correct,” said Mr Nordmeyer. “It is true there was an over-all downward trend, but it must be taken with- an upward trend in the amount of tax taken from the people. There was a substantial increase in tax taken by the National Government in its last year of office compared with its first.” Mr Nordmeyer said that an Opposition statement that last year’s taxation was the highest in New Zealand’s history was not correct. “What was taken from the individual earning the same amount was higher in 1956 than last year. It’s not correct to keep on saying taxation m 1958 was the highest in our history,” said Mr Nordmeyer. Applications For Refund Mr Nordmeyer emphasised that when the bill became law the filing of returns by taxpayers who had overpaid would be regarded as an application tor a refund. He said Opposition speakers had claimed the anomalies in the P.A.Y.E. system were caused by last year’s tax increases. “The answer to that is that it the P.A.Y.E. tables introduced on April 1 last year in accordance with the National Government’s legislation had continued for the whole year, seasonal workers would have still been at a serious disadvantage even if taxes hadn't been increased,” Mr Nordmeyer said.