Mayor asks for share of income tax

Press, 15 March 1978, Page 2

Mayor asks for share of income tax

The Government should i loosen its hold on the finan-

cial pursestrings and put a: surcharge on income tax that could be shared out to: local bodies, said the Mayor i of Christchurch (Mr H. G.' Hay) yesterday. In a list of financial wants and predictions of things to come, Mr Hay told the annual meeting of the Workers’ Educational Association that revenue-sharing was the most important recommendation made by a special committee of inquiry intoj local body finance last year. Money gained from a surcharge on income would be channelled through grants on a formula based on population, local needs and an authority’s rating efforts. Mr Hay said there should also be a per capita grant of at least $1 made to local bodies, absorbing the present 50c per head recreation and sport allocation, and allowing for more developments of community service facilities.

li There could also be room for another cent per gallon

tax on petrol to aid local authorities, especially to finance street work and other costs related to motor vehicles. “Most people have now forgotten completely that the cost of petrol includes a small tax of three cents per gallon paid to local authorities,” Mr Hay said. “It is a very painless form of taxjation to assist ratepayers, and is very equitable in its impact.” Mr Hay also repeated last year’s contention that some rorm of rate relief might I also be due to persons who pay rent, since rents preI sumably include enough j money to help the landlord pay rates. | “It would be rather a complicated administrative I procedure,” he said, “but I- | believe the principle applies in England for people paying (rent, so maybe one day it i should be introduced here.”