CABINET'S PROGRAMME

Evening Post, Volume CXV, Issue 23, 28 January 1933, Page 14

CABINET'S PROGRAMME

TAXATION LEGISLATION

COMING THIS SESSION

Although not prepared to elaborate the Government's policy statement on the inefe'asea taxation which will be necessary to' reduce by £2,400,000 tho anticipated revenue shortage for '1933----34, the-Prime Minister, the Eight Hon. G; W." Forbes, in reply to inquiries this morning)'left the impression that the introduction of a sales tax was part of Cabinet's •programme.

MryFoTbes-was Teminded that when the sales tax proposal was previously under consideration, it was estimated by the' Economic Committee that tho impost would produce .an additional £1,000,000, and that it was obvious that such a source of revenue could not be ignored in the. present search for funds.

The Prime Minister agreed that it must be a subject for speculation; there -could- be- no doubt about that. He gave- -no positive answer to the suggestion- that-the-tax would be adopted. Similarly, • Mr: • Forbes avoided direct reference to the levy which will have to be made by way or ordinary income tax. He offered no comment on a suggestion that the statutory exemption might" "be further reduced, say, from '£260't0 £220, and applied in such a way "as" to give it the effect of a'bachelor tax.' It was stated by Mr. Forbes, however,'that the Taxation Bill would be introduced this session.

Mr.' -JPorbes intimated that no date had yet been fixed for the. operation of the 15 per cent, reduction' in railway freiglit charges. •

The legislative programme for the session was still' in' course of preparation. He expected the Bank Indemnity'BilT to'be passed by' Wednesday night.

Asked whether Cabinet was still looking on the bright side of life, Mr. Forbes replied: "Most certainly, thero may be shadows in the valley, but We are keeping our eyes on the sunshine on the hill." s