The Dominion MONDAY, JANUARY 15, 1923. TAXATION THAT HINDERS DEVELOPMENT

Dominion, Volume 16, Issue 101, 15 January 1923, Page 6

The Dominion MONDAY, JANUARY 15, 1923. TAXATION THAT HINDERS DEVELOPMENT

Here, as in other countries similarly circumstanced, heavy taxation is admitted to be a necessary means of meefcia ® tions. Moreover, the rates of the principal direct taxes have be n lowered to some extent from their maximum post-war level, .nd taxpayers no doubt will he given further relief m the comparatively near future. . . , . , , „ In regard to the incidence as distinct from the weight of taxation, however, the position and outlook are muc ess sa is ac orj. To all appearance it will be a work of time and difficulty to secur any important alteration in the incidence of the main direct taxes. Yet there is no doubt that as they now fall these taxes are doing a good deal not only to hinder the recovery of established industries, but to discourage the investment of new capital in the The most familiar example in point is the present system of company taxation in this country. There are other forms of taxation, however, which threaten in a serious degree to re ar recovery and hinder development. , , , . , ... , Publicity has been given in Auckland, for instance, _ to a case in which British capitalists proposing to invest largely la ? d ia the Dominion in conjunction with the introduction of British immigrants find their enterprise barred by the overwhelming weight of taxation to which it would bo subjected. . Wo know nothing at first hand of the scheme in question, but the facte published illustrate the desirability of reviewing some existing forms of taxation in order T?Mt reasonable facilities may bo offered for assisted settlement and the introduction in good conditions of an acceptable class of immigrants. It appears to be the position at present that a British company or association formed to promote assisted group settlement in this country is subject to heavy taxation imposts from which rt would be immune in other parts of the Empire. These imposts include x heavy graduated land tax, absentee tax, and income taxation on the highest scale. . . . . , With regard to the case mentioned in Auckland it is stated that:

On operations conducted on a sca'o which would be worth while bv nnv strong English financial group it is estimated that the combmed'land tax, absentee tax, and income tax, if any profits were made on reselling, would be so enormous that it would make the workirife of such a sebemo almost impracticable. Apparently these disabilities would be imposed on any big-scale scheme of assisted settlement in this country promoted by British investors on a basis of private capitalisation. This seems to bo tantamount to excluding an otherwise hopeful means of forwarding the development of the Dominion and the more intensive use of its At present serious obstacles are raised to the introduction and settlement of agricultural immigrants. On account of the high prices of land ruling in this country, comparatively few of the immigrants available are possessed individually of an adequate amount of capital to enable them to take up holdings. Under the right conditions, the Dominion has everything <; bo applied not only to the development of lands at present unprogain from the introduction of bodies of private capital which would ductive but to bringing these lands into a state of intensive cultivation. In these conditions, the scope of productive enterprise might be enlarged considerably, -and many Bettiers enabled to acquire holdings on the instalment system who have httle hope of acquiring them in any other way. . Ono of last week’s cablegrams mentioned the formation in the West of England of county committees which will finance the overseas settlement of selected British immigrants, using for that purpose funds subscribed by private investors. In Australia facilities are being afforded for settlement in these conditions. New Zealand will -fare badly if instead it maintains an incidence of taxation tending to debar it from participation in any enterprise of the kind.