INCREASED TAXATION

Dominion, Volume 8, Issue 2478, 3 June 1915, Page 7

INCREASED TAXATION

PROPOSALS TO BE SUBMITTED TO THE HOUSE.

(By Telegraph.—Press Association.)

Auckland, Juno 3. A statement in regard to the question of a suggested war tax was mado by the Prime Minister to-day in replying to a deputation from the Sports Protection League. Mr. Masscy said that lie was very glad to bo able to say that the finances of the country were so satisfactory that if it were liccossary we could go on lor another .year without imposing additional taxation. but under the circumstances such a course would not be wise or advisable. The Government, however, had no intention of penalising any section of the community, and whatever increased taxation was necessary would bo spread as evenly and as fairly as possible amongst the _ taxpayers in proPortion to tbeir ability to pay. Some people were under the impression that tho Government was going to collect money by extra taxatioii for the purpose of paying the whole of tlie expenditure incidental to the cost of carrying on the Dominion's share of the war operations. This was not so. The Government could obtain money through the Imperial Government at a satisfactory rate of interest, probably not exceeding four per cent-. The whole of the funds required for the prosecution of tho war so far as the Dominion was concerned would be provided out of this borrowed money. It would, however, be necessary to make arrangements for paying interest and providing for a sinking fund out of increased revenue. The Government's proposals for raising this increased revenue would be submitted to Parliament when the House met at the end of this month.