FINANCE BILL

Evening Post, Volume CX, Issue 41, 16 August 1930, Page 9

FINANCE BILL

SOME ALTERATIONS

AMUSEMENT TAX

A UWIITED EXEMPTION

The Government's financial proposals, with the exception of the Customs items and the land and income tax changes, which are contained in other measures, made their appearance in the House last night in the Finance Bill. Two deviations are made from the intentions expressed in the Budget. They are in connection with the amusement tax and the fee for sharebrokers' licences. JNo tax is to be payable on theatre tickets under Is 6d in value. If more than one sharebroker is operating in the same firm in one town a £5 fee will be chargeable on the first partner, the charge on the others being £1 each.

Explaining the Bill in the absence of the Minister of Finance (the Hon. G. "W. Forbes) the Minister of Lands (the Hon. E. A. Ransom) said that the first part of the measure related to the stamp duties and the increase in the bank note duty from 15s to 22s 6d per cent., and made provision for the increase in the totalisator duty from 2* per cent, to 5 per cent., the extra 2J per cent, to be paid into the Consolidated Fund. It also gave effect to the ,10 per cent, increase in stamp duties generally other than those paid by adhesive stamps. _ Part 2 dealt with the death duties, providing for a 10 per ecnt. increase an the charge made on estates which were finally assessed at over * 100,000, and sift duty of 21 per cent, on gifts valued It between £500 and £1000. AMUSEMENT TAX. Part S increased the amusement tar, but a slight alteration had been made from the Budget proposals. Tickets, below Is 6a in value would not be dutiLabour voicesj "Hear, hear." (Reform laughter.) The duties on the other tickets, said Mr. Bansom, would be as follows:—Is 6d tickets, 2d; 2s, 3d; 3s, 4d; 3s 6d, 3d; those exceeding 3s 6d, Id for each additional Is. The loss was made up by the penny increase on tickets in excess of 3s 6d. . Part 4 dealt with the mam liign•ways. The grants to the Highways Fund made previously from the Consolidated Account and from the Public Works Account were cancelled, and, togethor with the subsidies to local bodies on rates, they were to be transferred to the Highways Account. Provision was made for the payment of interest on capital moneys from the Highways Account. To meet .these payments, revenue was derived1 from'the additional twopence petrol tas. Any remaining balance from the tax was to be spent on backblocks roads when a full year's, petrol tax was collected. This year, of course, there would be revenue from the tax for only eight months. He estimated that next year about £120,000 would be available. Boads which afforded access to outlying areas would be classified in-the manner in which outlying district roads are at present classified. A schedule would be prepared, and the amounts proposed to toe expended would come before the House in the Public Works Estimates. - TAX ON FILMS. Part 5 of the Bill, said Mr. Kansom, dealt with the film hire tax. The duty was to be assessed at 10 »er cent, of the proceeds on British and 25 por cent, of the proceeds on foreign • films. A variation was being made from the system of collecting the tas by ad valorem duty. It would be impossible to make a fair ad valorem assessment in respect to talking films, and provision was made whereby after allowing for certain charges in connection with exhibition in the theatres, the value of the film to the producing company would be ascertained and the duty would be charged on the remaining balance. Thus the most popular pictures would pay the greater amount of duty. There was no increase on the silent films. Part 6 of the Bill dealt with miscellaneous items, including the increased licence fees from sharebrokers. A slight alteration had been made from the Budget proposals. The original proposal was that sharebrokers should pay a licence fee of £5. The alteration was that where there was more than one member in a firm in one town each additional partner would be required to pay only £1. Another item was the abolition of the Land Insurance Fund, the moneys being credited to the Consolidated Account with the excoption of £25,000, which was being, credited to a deposit account in case any claims against the fund were made in the next five years. There wotild, bo approximately £60,000 revenuo from that source for the year. A'TOTAL OF £450,000. The final provision enabled a further £SO,OOO of interest on reparation moneys to be paid by -the Public Trustee to the credit' of the Consolidated Fund. It was estimated that the Bill would provide approximately £450,000 in revenue. Mr. Ransom said in conclusion that the second reading of the Bill would be taken next Monday. A VAST IMPROVEMENT. ! The Leader of the Opposition (the Bight Hon. J. G-. Coates) said he thought some of the alterations were a j vast improvement on the original proposals.

In roply to Mr. Coates, the Minister said that the gross rental value of a picture would be stated by the renters in monthly returns, and that the cost of administration and distribution and tho amount of income tax would be deducted before the calculation of tax wan made.

The Leader of the Labour Party (Mr. H. E. Holland) expressed satisfaction at the fact that the tax on amusements was not to bo levied on shilling children's tickets.