FLOUR TAX TO GO

Evening Post, Volume CXVII, Issue 112, 14 May 1934, Page 12

FLOUR TAX TO GO

IMPOSED TO HELP WHEAT GROWERS

The flour tax imposed by the Federal Government will be abolished as from May 31. In making this, announcement (as already announced by cablegram in "The Post"), the Prime Minister (Mr. Lyons) said that the Government intended to provide for a refund of tax paid in respect of the flour content of stocks of self-raising flour in excess of 10001b held at the date of cessation of the tax.

Sufficient of the financial year has now passed to enable the Government' to estimate that it can afford for this financial year to lose the £250,000 of revenue entailed in the lifting of the tax. The flour tax was part of the special taxation imposed by the Federal Government in November last to meet the cost of the £3,000.000 grant for the relief of wheat growers. The flour tax of £4 ss, it was estimated, would realise £1,600,000 up to June 30 next, and, in addition, there was an;.increased Customs duty of 6d a lb on tobacco, which, it was estimated, would realise £130,000, and a modification of the proposed partial remission of the special tax on property income giving an estimated additional revenue of £220.000. The balance of approximately £1,000,000 was to be made up in other ways from the Budgets of this year and next year.