Tax take drops as phone charges rise

Press, 2 October 1979, Page 3

Tax take drops as phone charges rise

PA Wellington Thousands of wage earners will receive more money after this week’s work. The Government's new tax package, announced in the Budget, came into effect yesterday. So did increases in postal and telephone charges. In October, 1974, a single person earning what was then the average wage, paid ? ,3 per cent of income in tax. This month, depending on how much the average wage has risen, tax is likely to take between 23.5 and 24 per cent of the average income. the man with a non-work-ine wife and a child under

i five is now better off, howeve as a result of rebates I designed to help families. I In 1974, tax took 18.5 per icrnt of his income. This I month, after the changes, it |is likely to take 13.7 per |cent. This is a higher rate of tax than after the family reIbates were introduced in 1977, but balancing this will .‘be the doubling of the famlily benefit to $6, from OctoIber 17. '■ Without the Budget ! changes, the proportion of : the average wage taken in 'tax would have risen to a I record. I A series of cost rises took effect yesterday, notably for ’postage and telephones. i The annual registration

fee for publications rose $7. Telephone rentals for most home subscribers are up as i - .ch as $4 for each twomonthly bill. This will apply to subscribers in the larger urban areas, where calls can be made over a" wide area without payment of toll charges. There is no change in basic rentals for subscribers on exchanges where there'is not ■ continuous attendance, manual exchanges with up to 3000 subscribers, or automatic exchanges with up to 200 subscribers. Three categories of business telephone rental are intro iuced. including one for telephones used only in a secondary way for business. . Inland toll charges are up by amounts varying from 3c to 27 cents. Inland telegram charges have risen from 90c to $1.60 for 10 words, with 6c for each additional word.