BUDGET FORECAST

Evening Star, Issue 19001, 24 July 1925, Page 8

BUDGET FORECAST

INCOME TAX -REDUCTIONS LIBERALISATION OF PENSIONS EXPECTED [From Ock Parliamentary Reporter.] WELLINGTON, July 24. ■ Tho Financial Statement to be presented by tbc lion W. Nos wort by (Minister of Finance) to-night is not expected to contain unusual features but will survey tho position carefully, give a good deal of information on the financial operations of the Government, and review appreciatively tho policy of the late Prime Minister in bringing about improved conditions since thewar. Chief interest will centre in the Government’s proposals to further reduce taxation, a good opportunity being afforded by last year’s surplus of £1,235,000. ft is expected that the biggest reduction will bo shown in connection with income tax. The Government is understood-to 1 favor a readjustment of debenture taxation, with a view to relieving tho difficulty ol securing money for' private borrowers owing to the attractiveness of local bodies’ debentures bearing a Hat rate of interest.

Apparently no change is contemplated in land tax. Financial provision is to be made to enable some of the Government's proposals to liberalise tho pensions system to be carried out this year. The debt reduction scheme, as indicated in the Government measure before flic House, will bo the subject of an interesting statement.

Although Cabinet has been considering the problem involved in heavy local body borrowing, IT is not expected that tho matter can receive legislative attention this session.