Tax Blamed For Slower Expansion

Press, Volume CVII, Issue 31450, 17 August 1967, Page 24

Tax Blamed For Slower Expansion

(N.Z. Press Association) WELLINGTON, August 16. Excessive taxation was undoubtedly one of the main factors slowing down the rate of increase in farm production, said the president of the Constitutional Society, Sir Matthew Oram in a statement today. Sir Matthew Oram was commenting on estimates that in the past season farm output increased by only 2 per cent. “An increase in production takes some years to show re-

suits, so it can scarcely be claimed that the recent falls in overseas prices have discouraged farmers so quickly," he said.

“Many farmers responded readily and patriotically to the call for higher production to raise overseas earnings, sometimes against the recommendations of their financial advisers who pointed out that savage income tax on higher earnings, coupled with crippling death duties on inflated valuations, would leave the family estate worse off than before if the head of the family died.

“It is disastrous for our primary industries to be affected in this way. “Our standard of living depends largely on increased production and farmers should receive more incentives to raise their output, instead of being penalised by harsh taxation," said Sir Matthew Oram.