WEDNESDAY, SEPTEMBER 29,. 1915.

Dominion, Volume 9, Issue 2579, 29 September 1915, Page 6

WEDNESDAY, SEPTEMBER 29,. 1915.

THE WAR TAXES ' ■ ' T —'—7' ! Some important alterations in the taxation proposals set out in the Budget were announced and, explained by the Finance Minister in the House of Representatives yesterday in opening the debate on the Finanoe Bill. The National Government's war taxation .will certainly .be improved by the proposed ohanges. The Government has evidently been impressed by the adverse criticism, which has been directed against the kerosene duty. It has been found very difficult to make a distinction for taxing purposes between kerosene and ooh'.T kinds of motor spirits, and it has now been, wisely decided to abandon. altogether the tax on mineral oils.' The' revenue expected from .this source has been estimated at £19.4,000, and it is proposed to make good the deficiency by means of a primage duty of one per cent, on imports. This is" undoubtedly a more satisfactory method of raising revenue than the oil tax, which would- pross rather hardly on a. section ..of the community, at any rate as. far as kerosene is concerned. The primage duty, will operate on much broader lines, and it might have been- further increased and other of the lesser re-venue-raising devices abandoned. It will cause less friction, ancl is amore satisfactory way of increasing the public revenue than a resort to tinkering measures that involve an unneoessary amount of trouble and irritation. The primage duty is expected to realise £200,000. This calculation is based on an import trade of the value of £20,000,000. Last year our imports amounted to about £22,000,000, but it is anticipated that there will bo a falling off as a result of the war. A deorease in imports during the present trying times need not give rise .to any anxiety. As the Finance Minister remarked last night the important thing is to keep up the amount of our exports. The beer duty proposals outlined in the Budget have been subjected to a good deal of oriticism on the ground that more revenue might well have been secured from this source. The amended proposals provide for a further increase of one farthing in the beer tax. This is not likely to satisfy the general public that this form of taxation has been carried as far as it could and should be. Some critics have expressed doubts as to the wisdom of experimenting at the present juncture with a new system of beer taxation—according to alcoholic strength; but the Finance Minister has satisfied himself that the alteration will produce the desired result from the Treasury point, of view. Th© Government anticipate that the increased taxation wliich Parliament is now asked to sanction will produce £2,000,000 but it is probable that this amount will be exceeded. It seems certain, however, that all the additional money will bo needed, and the Finance Minister has prudently decided to make jure that if there is any error in his estimate it will be on the safe side. If. the times were normal some of the war taxation proposals would invite _ strenuous hostile criticism. But with matters as they are—with the Empire ,fightins for Bxißt«nce~-it desirable that we should all refrain .aa w as,

possible from disputation over raafcters'of secondary importance. Most people a natural and proper disinclination to press to extreme lengths such objections as tliey may have to the present Budget, however reasonable those objections may be.