BUDGET AND SHARES
EFFECTS ON MARKETS
(By Telegraph.) (Special to the 'Evening Post.")
DUNEDIN, This Day
Apparently anticipating increased taxation the investment market has displayed practically no reaction to the contents of the Budget. The general body of New Zealand stocks, industrial and others, have maintained a firm front.
So far as companies are affected by the Budget increases, the smaller concern suffers the most. Its basic rate has been increased trom Is to 2s in the £, or a rise of 100 per cent., while companies operating under the maximum rate have experienced an advance of a shade under 6 per cent. The difference is surprising. It is to be expected that larger absorption by taxation will be reflected in the balancesheets, but at the same time the Social Security charge now appears on the balance-sheets, while so far as most Dunedin companies are concerned, the greatly increased land valuations will eat further into their earnings.
The immediate investment effect of the Budget will be reflected in quieter business.
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Bibliographic details
Evening Post, Volume CXXVIII, Issue 30, 4 August 1939, Page 12
Word Count
169BUDGET AND SHARES Evening Post, Volume CXXVIII, Issue 30, 4 August 1939, Page 12
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