LAND TAX

Evening Post, Volume CVI, Issue 46, 31 August 1928, Page 11

LAND TAX

"GROSS INJUSTICE" A ■■' FARMER'S VIBWPCiINT;. 'V;'. Speaking at the annual meeting of tho" New Zealaud Sheep Owners and Farmers' Federation, the president, Mr. H. D. Acland, commented on the incidence of the land las as follows:— "As showing the gross injustieo of the land tax o many farmers, I.quote the following figures:whicb;i,febl sur.o, will bo .'sufficient to .demonstrate not only the high cost of production but also the iniquitous effect of tho land tax as applied to the farming community in many cases. Tho figures aro* in relation to tho income earned by a sheep run of approximately 4000 acres of hill country, with small, flats, good average country, and comparatively easily worked, and not far..;, from-a big. ' centre, and only a short, distance',-from, the railway. 'Tho,unimproved valuaVof:1 tho property as assessed by tho Gov-' eminent valuers for taxation purposes i 3 approximately £60,000, and tho capital value for the same purposo is set at £69,000. If tho s cash represented lin tho capital valuo of this property I were invested "in debentures earning 5 per cent., tha return to the owner would be £3450 per annuni^and'the in*. I eomo taxpayable even 'oil iho highest basis would boapproxin^atelyiSs.in.'the i £ or a total of £862 ■J"Os.>'-.-..' .;,.. - For taxation purposes, the unimproved value was. set down at £58,890, and the capital value at £69,010, with tho following results: — . Exponflituro . including: . Expendi- Local Receipts, ture. rotes. liand (ax. Tear. £ ■ £ ' £ *: I 1020-21 .. 12,127 5.519 300 ■ 3,128/ 1,921-22 .. 0,012 5,746. 3TS ;■ 1,277. ISL>2-23 .. 0,30J ■• S;S6G . S7S. 1.207 1928-24 .. 8,280' ' S,S»T S3l 1,07s1 . W24-S"> .-. 11,280 6.510 . .296 .903 1025-26 - .-." C,3;i-i 5,253 ". 309..".ir1,ft05'"---1026-27 .. 4.5G0 fi,509.-;'-aO3 ■■ .1.030 1037-SS .. 7,801 5,739 232:- • 903 , Total>s -.. C3,59(j 53,099 2,529 5,568 "The total, net income- for eight years was £4497, and the average net income per annum was £562," ho said. "Tho average land tax per annum came.to £1071, and the average local rates amounted to £316. It will be seen from the above figures that taking the income tax on tho highest basis —viz., approximately 5s in tbo £—this farmer has paid at least eight times moro than ho would have been asked to pay had he been 6ubjeet to the highest graduated income-tax." 'SYou will havo noticed that the Leader of tho Opposition, Mr. H. E. Holland, suggested in Parliament recently that tho farmer should bo made to pay' not only land tax but income tax as well. If Mr. Holland went on the land, ho would, I feel sure, in the I course of a year or two have'reason to materially alter his views, and'he would certainly, in my opinion, bo more sympathetic to the farmer."