Call for end to land tax and speculation tax

Press, 2 April 1979, Page 5

Call for end to land tax and speculation tax

PA Tauranga The New Zealand Chambers of Commerce want the Government to abolish property-speculation tax and land tax. At the annual meeting of the Mount Maunganui Chamber of Commerce, the South Auckland zone representative on the national body, Mr A. Abel, said the chambers could see no justification for the continuation of these taxes. “The amount of revenue collected is infinitesmal compared with the total revenue, and in our business experience it is merely an impediment to normal business transactions,” he said. “We do not believe there are any mischiefs of speculation in the property market at present and therefore the tax no longer serves its original purpose — if it did serve any purpose anyway.”

Mr Abel said the purpose of the land tax was well known: to prevent the aggregation of land holdings and to collect revenue in the form of wealth tax. However, he showed figures that demonstrated that as the total revenue increased, the propertyspeculation tax went down during the last few years. Of the total tax income received during the 197778 financial year, $3,605,214,540, land ~ tax accounted for $8,372,174, and property-speculation tax amounted to only $190,356. The call to abolish the

land and speculation taxes was included among a list of recommendations sent by the New Zealand Chambers to the Prime Minister (Mr Muldoon). They asked that these proposals be taken into account in the framing of the fiscal measures in this year’s Budget. They asked that: — Steps be taken to give businesses immediate relief from the effects of inflation. — That dates for the payment of provisional tax be amended so that the first instalment could be paid in the sixth month, and the second instalment be paid in the twelfth month of the tax-

payers’ financial year, with transitional provisions it necessary. — That the unemployment benefit be taxed at source, as were wages and salaries, and that payments be included in the recipient’s taxable income. — That the level of unemployment benefit be adjusted so that after tax a recipient receiving the unemployment benefit only for a full year would receive the same amount as at present. — That the limit of tax exemption for superannuation contributions and life-insurance premiums be raised. — That double taxation of dividends be eliminated.