THE TAXING BILL

Evening Star, Issue 17482, 13 October 1920, Page 4

THE TAXING BILL

At last night's sitting of the House of Representatives,

The Leader of the Opposition drew attention to an amendment made in clause 2, which clause, as it appeared in the Bill, did away. with the right of the people's representatives to deal with thn annual taxes.' He thought the drafting of the clause very faulty. The''Prime Minister said there never was any intention to deprive the people's ro presentatives of the right to deal with the annual taxation proposals of the Go vernment. He valued the constitutional rale too highly for that; but, while there was no doubt in his mind, or in the mind of tho department, as to the meaning of the clause, doubt had arisen in the mind of a well-known Wellington firm of lawyers, and a new clause was drafted to make the position quite clear. . Mr Luke said he hoped the Government would not place undue hardship on local authorities in making them collect revenue for *i-he Dominion, through taxation of debentures; neither should trading* concerns and the activities local "bodies be handicapped by taxation. Clause 2 was amended by tho addition of tho following sub-clause*2:—"Nothing in this section shall be so construed as to authorise the assessment or levy of Land Tax for any year, save pursuant to the provision of the annual Taxing Act for that vear."

In clause 6, on tho suggestion of Mr Wilford, an amendment was made to make more clear the definition of " unimproved " land. .

In clause 8 Ma- Massey agreed to look to the. question of the taxation of Native land held undejr trust. To clause 9 the following sub-clause was added:—Nothing in this section shall be so construed as to authorise assessment or levy of Income Ta'x for any year, save pursuant to the "provisions' of tho annual Taxing Act for that vear. On clause 10 Mr Wilford called for a division, because, he said, it abolished the Absentee Tax, wta'ch, he contended, ought to be doubled.—The clause was retained bv 27 to 9.

Other minor amendments were made, and the Bill was reported. On the third reading the. Leader of the Opposition commented on the great changes made in the Bill since it was first introducod, as a result of the searchlight of puhlic criticism turned on it. He criticised many of the provisions which, he- declared, favored the wealthy man| and said the Bill was not, in his opinion, liberal in any sense. Mr Massey answered the points raised, after which the Bill was read a third time .and passed.