Bills To Validate Budget Tax Cuts

Press, Volume CI, Issue 29903, 17 August 1962, Page 12

Bills To Validate Budget Tax Cuts

(New Zealand Press Association)

WELLINGTON. Aug. 16. T>vo taxing bills, necessary

to implement Budget decisions on the rates of income tax. Social Security tax, land tax and excess retention tax to apply this financial year were introduced to Parliament today. The result of the two measures, when read together, is to give effect to reductions in land and income tax announced in the Budget. In the Land and Income Tax Amendment Bill, new P-A.Y.E. tables are provided, to operate from October 1, 1962.

These incorporate, for individual taxpayers,' a 5 per cent, reduction in the ordinary income tax content of the weekly tax deductions up to a maximum annual reduction of £5O. They also incorporate a general exemption of the first £2 of weekly income from Social Security tax of £lO4 if expressed in terms of annual income.

The bill also provides an amended scale of ordinary income tax rates for companies. whereby the first £3600 of income is assessed according to the existing graduated scale, and the income over £3600 is assessed at a flat rate of 8s 6d in the £1

Some examples of the new P.A.Y.E. deductions are:—

£ s M Ml M2 M3 a week £ s d £ s d £ s d £ s d i - s d 15 1 16 7 1 8 0 1 3 9 0 19 6 0 19 6 20 2 19 0 2 9 9 2 5 6 2 1 3 1 16 11 25 4 6 9 3 13 10 3 8 2 3 3 2 2 18 8 30 5 19 3 5 3 10 4 16 7 4 9 8 4 3 3 35 7 15 0 « 17 8 6 9 3 6 1 6 5 13 10 40 a 13 8 8 14 7 8 5 5 7 16 8 7 8 0 50 14 0 6 12 17 8 17 0 2 16 7 8 15 15 4 60 18 19 7 17 13 0. 12 8 7 11 15 11 11 5 8