TAXATION ADJUSTMENTS

Evening Star, Issue 19326, 12 August 1926, Page 4

TAXATION ADJUSTMENTS

REVIEW DURING RECESS DIFFICULTIES TO BE OVERCOME [From Oor Fabliaus <tart Reporter] WELLINGTON, August 11. A very careful study of the whole question of direct and indirect taxation is to be undertaken during the recess, according to a statement made in the House to-night hy the Minister of Finance. Referring to criticism which had been levelled against the present incidence of land and income taxation during the second reading of the Income Tax Amendment Bill, the Minister said he had recently quoted figures which showed beyond doubt that under the present system the burden of- taxation was placed on the shoulders of those best able to bear it, such as people with large incomes and large landed properties. “On account of the enormous growth of local taxation, it means that two taxation authorities are trying to reach the same field, and some adjustment nmst be made before long,” said the Minister. “On account of subdivision the laud tax yield is leading to an unreasonable increase in taxation. Roughly speaking, I think it is a fact that two-thirds of file income tax is derived from incomes of £5,000, and iour-lifths of tho land tax is paid by those of £IO,OOO and upwards. I hope during the recess to make a very careful study of the whole question of taxation, both direct and indirect, because we hope next year to revise the Customs tariff so that the whole area of taxation will come under review; and I also hope then that some of the matters giving rise to difficulty at the present time may be overcome.”