MORE TAXATION

Dominion, Volume 25, Issue 170, 14 April 1932, Page 8

MORE TAXATION

Imposition on Sales _ NEW BILL PENDING Relief for Married INCOME EXEMPTIONS The next Government measure tn., be placed before Parliament will be the Sales Tax Bill, which will proably appear on Friday. Cabinet has vet to give final consideration to the draft of the Bill, so that there is the possibility that its presentation may not bo made until early next week. However, it is hoped to introduce the Bill toward the end of the second reading debate on the National Expenditure Adjustment Bill, now before the House. The intention is to defer the committee stages of the Adjustment Bill until the Sales Tax Bill has been disposed of. Since it became known that the Government definitely contemplated the sales tax as a revenue-raising method, keen interest has been displayed in the form in which this tax will be levied. However, that is a question which will probably not be answered until the Bill appears. The Economic Committee, which suggested the sale tax plan to the Government, estimated that the device should produce about £1,000,000. However, it is said the Government expects to secure a considerably greater revenue than that.

As was recently indicated, the question of income-tax adjustments has recently been under the consideration of the Cabinet, and it now appears definite that the matter will be dealt with during the emergency session. Although Cabinet is understood not to have dealt finally with the question yet. there is a definite proposal afoot to lower the exemptions so as to differentiate between married and unmarried taxpayers. The exemption now stands at £260. It is possible that as far as married taxpayers are concerned that mark will not be altered, but, even if there is a general lowering, it is understood serious consideration will be given to the proposal to make the exemption smaller in the case of bachelors and spinsters. JUDGES’ SALARIES Question of Reduction BINDING LEGAL TIES \ It is learned that the Government has taken steps to communicate yvith the Judiciary with a view to arranging for a curtailment, of judges’ salaries in line with the sacrifice being enforced generally by the National Expenditure Adjustment Bill now before the House. When the general 10 per cent, cut was made last year it was stated that judges were outside the scope of the legislation. It is provided by the Judicature Act that the salary of a judge shall not be diminished during the continuance of bis commission, and it is understood that Cabinet has given consideration to amending the Act in that respect. Notice of a question on the subject was given in the House yesterday by Mr. R. Semple (Lab.. Wellington East), who intends to ask the Prime Minister whether he would take steps to ensure that. Judges of the Supreme Court and the president of the Arbitration Court share in the. general sacrifice. Mr. Semple said that in .the Australian States, and in Great Britain, the judges were under the same provisions as to salary iu New Zealand; yet in all those countries the judges had received a cut in salary similar to that of other Public Servants. • If the judges would not consent to a reduction in salary, Mr. Semple asked whether the Prime Minister would take steps to pass legislation enforcing .such a cut, and reserving tlie Act for his Majesty’s consent, as was done in \V estern Australia. Mu Semple also inquired whether it was proposed to reduce the increase granted judges in 1920, and the pensions paid them without any contribution being made by them.