TAX PAID BY CHEQUE

Press, Volume CI, Issue 29802, 19 April 1962, Page 17

TAX PAID BY CHEQUE

Rise Of film On Last Year

Income tax payments by cheque this year totalled about £5B million, compared with some £57 million last year. Latest figures from the New Zealand Bankers’ Association's research directorate show that deposits by customers fell £2B million and advances rose £3O million in March. Last year in March deposits fell £2O million and advances rose £37 million. “The trading banks lost almost £6O million to the Reserve Bank during March as customers met their tax demands,” the directorate says, commenting on the figures. “Although the tax flow for the month was probably about the same as in 1961. it appears that this year a higher proportion came out of credit balances and less out of overdrafts. Forced to Borrow “By the end of March both credit limits and actual advances were substantially lower than a year ago, but the banks were still being forced to borrow heavily from the Reserve Bank to maintain their statutory balances. This would suggest that the Government wishes credit squeezed still further, despite recent ministerial statements that bank advances have been brought under control and that credit should be readily available for farmers. “Cheque clearings for the month were somewhat below March, 1961, indicating a continuance of the lower level of spending observed in February. Bank debits in the March quarter were 1 per cent. lower this year than last year.”