TAXATION ON LAND

Dominion, Volume 24, Issue 187, 6 May 1931, Page 9

TAXATION ON LAND

Snowden Explains Hia Budget Proposal

TASK OF VALUATION

Official Wirejess. Rugby, May 4.

In the House of Commons, the Chancellor of the Exchequer, Mr. Philip Snowden, explained his proposals for the taxation of land values, for which, as he announced in his Budget speech, provision will be made in this year’s Finance Bill, though the tax cannot be imposed for two years, by which time the necessary preliminary valuation has to be carried on. He said that the restriction of the use of land was the restriction of human endeavour. Land values were rising in the large towns to fabulous prices. The Lordship of Liverpool was sold, in the year 1635 for £450, but recently sites in Liverpool had been sold at the rate of more than £1,000,000 per acre. / * “Rent to Community.”

He described the tax on land as a rent to the community for the use of the property of tlie community. Revenue would not be the only 1 advantage, but there would also be the effect it would have of cheapening land. The first step was valuation. This would begin in October and be completed within two years, at an estimated cost of between £1,000,000 and £1,500,000. Adopting the advice of Mr. Lloyd George, he proposed that it should be as simple and direct as possible, avoiding the complexities upon which, the foii mer scheme for the taxation of land values broke down. There would be between ten and twelve million separate hereditaments to value. The values ascertained would be made public, and he hoped that they would become in due course the basis for the purchase of land for public purposes and the basis of local rating.

Cases for Exemption.

Mr. Snowden said that the tax, which would be levied at the rate of one penny in the £l, would not apply to .agricultural land, and land of a higher value would be subject to the tax only on the excess over its agricultural value.

There would be no exemption whore the total amount payable did not exceed 10/-, the equivalent to a capital value of £l2O. Certain land would be exempt, such as sites for churches, public buildings, hospitals, and the land used by railway and other public utility companies. He would not venture an estimate of the yield at present. He claimed that ti e scheme was a practical, beneficial measure to deal effectively with a great social wrong. Sir Austen Chamberlain (Conservative) reserved criticism of the Opposition till the proposals were available in detail. He said that the effect of the tax would be to put an additional burden of income tax on a class of property which already paid its full contribution.

“EVASIVE” SPEECH

Critics Complain of Tone

PRESENT DEBATE FUTILE (Rec. May 5, 8 p.m.) . London, May 5. Political writers complain of the acrimonious tone and obscure terms of Mr. Snowden’s speech. The “Daily Telegraph” says that its evasiveness is regarded in Opposition circles as substantiating the belief that Mr. Snowden and his -colleagues are concerned mainly with electioneering propaganda. The present debate largely is futile. The issue can be joined only when the Finance Bill is published. The “Morning Post” describes it as “an unblushing piece of class legislation, drafted in partisanship and inspired by vindictiveness.”