Heavy Increases In Rates Of Taxation

Dominion, Volume 32, Issue 261, 2 August 1939, Page 10

Heavy Increases In Rates Of Taxation

NEW BURDENS DISCLOSED IN BUDGET

Higher Income Tax And Reduction In. General Exemption MORE REVENUE FROM PETROL AND BEER Expenditure Of £23,917,000 On Public Works Heavy increases in taxation arc proposed in the Budget presentedin the House of Representatives last night by the Prime Minister, Mr. Savage, in his capacity as Acting-Minister of Finance, lhe basic rate of income tax is to be increased for individuals from 1/8 to 2/- in the £ and the general exemption is to be reduced from £2lO to £2OO- petrol tax and beer duty are to be increased by fourpence and sixpence a gallon respectively; and the scales ioi estate succession and gift duties are to be raised by approximately 20 per cent. The basic rate of company taxation is. to go up from 1/- to 2/- in the £. rioo.omn r> • . The current year’s proposals involve a total Consolidated Fund expenditure of £38,-43,000. Revenue is estimated at £35,760,000, leaving a shortage of £2,483,000 to be provided from additional taxation, lhe higher lates it is intended to impose are expected to produce an extra £2,500,000, leaving an estimated surplus of £17,000 for the year. The surplus of £809,000 from last financial year is to be transferred to the Social Security bund. The Public Works programme outlined provides for the expenditure of £23,917,000 during the year, and of this sum £19,062,000 is to come from loan money. The total expenditure by the Government on housing to July 31 was £7,106,000, and the total commitment since the inception of the scheme is approximately £10,000,U00. Defence expenditure this financial year will amount to £5,400,000. c The public debt was increased during the past year by £13,768,9a0, and the total indebtedness of the Dominio is now £303,970,272. Of this sum £156,853,016 is domiciled in London, £146,237,656 m New Zealand, and the balance in Australia. A national savings scheme is to be inaugurated to provide an avenue of investment ioi small The import restrictions were stated to be temporary. They are to be relaxed as the need for them passes The iron ore deposits in Onekaka arc to be developed, and plant is to be constructed involving a capital outlay of £5,000,000 spread over three and a half years. The Budget was shorter than usual. Mr. Savage was an hour and a quarter in reading, the document, aftei , which he formally tabled a copy of the statement and theestimates of revenue and expenditure. Resolutions were then brought down imposing the higher rates of beer duty and petrol tax, urgency being taken for the passing oi these. The public galleries were well filled.