TAX REBATE ON SAVINGS

Press, Volume XCIX, Issue 29278, 9 August 1960, Page 14

TAX REBATE ON SAVINGS

Change Sought In Provision (New Zealand Press Association) INVERCARGILL, August 8. The New Zealand Building Societies’ Association is to ask the Minister of Finance (Mr Nordmeyer) to change the Budget provision confining the £3O interest rebate on income tax to interest derived from Post Office and Trustee Savings banks or Government stock. This restriction and the cancelling of the old £l2 general rebate were the subject of a protest by Mr B. E. Taiboys, M.P. for Wallace, in Parliament on Friday. Announcing the decision to seek an amendment of the legislation, the president of the Building Societies’ Association, Mr R C. Cook, of Invercargill, said today it was “alarming to say the least” that this change was to be made at the expense of the outside investor, such as the building society investor, by the elimination of the £l2 exemption Which had previously been allowed to him. “Does the Minister of Finance, by his action, admit that the Post Office Savings Bank and others cannot give the service that building societies do?" Mr Cook asked “Therefore must he. by legislation, endeavour to strangle any opposition? Is he aware that the building societies over the years have been used and accepted as the middleman’s bank, both for investing and borrowing? “In many cases, the only asset the family man possesses is the equity in his home. When in need of money for an emergency, he has ’ been able to re-borrow against his home from a local building society and get, m many cases, an immediate decision. Why should he now *•» penalised if he saves with the society that has helped him in the past' ’ 4 “The Building Societies’ Association will definitely make representations to the Minister requesting the amendment of this very unfair legislation.”