DIRECT TAXATION

Dominion, Volume 30, Issue 159, 2 April 1937, Page 6

DIRECT TAXATION

Labour Conference’s

Preference

After considering remits asking that recommendations be .made to the Government concerning certain items of taxation and the exchange rate , the Labour conference yesterday reaffirmed the party’s preference for direct taxation, but recognised that readjustment might be difficult. The conference was asked to consider (a) the sales tax, (b) the exchange rate, (c) the wage and salary tax, (d) land tax exemptions, (e) Customs duties on necessities, (f) income tax graduation. The recommendations of the finance committee, which were adopted, were as follows: — "(1) That the conference congratulates the Government on the success of its first Budget and its application of sound principles of taxation by requiring citizens to contribute to the funds needed for national services according to their ability to pay; (2) the need of obtaining adequate finance for our existing social services and for extensions such as national health insurance and superannuation is paramount; (3) that while the committee recommends the conference to reaffirm the party’s preference for direct as opposed to indirect taxation it realises that the work of the readjustment of existing taxation, some of it unsound in principle, imposed by previous Governments, may be intricate and difficult and requires much careful consideration and lime to carry out. It feels that the task of such, readjustment can be safely left in the hands of Labour’s representatives in Parliament.”