POINTS FROM BUDGET

Dominion, Volume 32, Issue 261, 2 August 1939, Page 8

POINTS FROM BUDGET

Taxpayers Faced With Heavier Imposts INCOME TAX, PETROL AND BEER DUTIES Important points from the financial statement presented in the House of Representatives last night by the Acting-Minister of Finance, Mr. Savage, are as follow: — The basic rate of income tax for individuals is to be increased from 1/8 to 2/- in the £, and the general exemption is to be lowered from £2lO to £2OO. The petrol tax is to be increased by fourpence a gallon. Beer duty is to be increased by sixpence a gallon. Estate, succession and death duties are to be increased by approximately 20 per cent. The basic rate of company taxation is to be increased from 1/- to 2/- in the £. SURPLUS FOR YEAR. Expenditure for the current financial year is estimated at £38,243,000, and the revenue, after imposing the extra taxation, is expected to amount to £38.260,000. This will leave a surplus of £17,000. STEEL INDUSTRY. The iron and steel industry in Onekaka is to be proceeded with at an estimated capital cost of £5,000,000 spread over three and a half years. Sufficient iron ore is said to be available to meet requirements for at: least 50 years. HOUSING COMMITMENTS. The commitments to date on account of the Government’s housing scheme amount to £10,000,000. EXPENDITURE ON DEFENCE. Special attention is being given to the strengthening of the country’s defences, and the expenditure this year will be approximately £5,400,000, involving substantial increases in all the fighting services. INCREASE IN PUBLIC DEBT. The net increase in the public debt last year was £13,768,930. The Dominion’s" total indebtedness is now £303,970,272. PUBLIC WORKS PROGRAMME. The public works programme for the rear Involves an expenditure of £23,917.000, of which £19,062,000 is to come from loan money. The internal loan recently raised will provide £4,500,000. NATIONAL SAVINGS. A national savings scheme is to be introduced to provide an avenue for investment by persons with small sums of money. SOCIAL SECURITY. The surplus of £809,000 in last year’s national accounts is to be transferred to the Social Security Fund.