TAX REDUCTIONS

Evening Star, Issue 25950, 15 November 1946, Page 7

TAX REDUCTIONS

THE AUSTRALIAN BUDGET FIRST STAGE OF POST-WAR TRANSITION COMPLETED CANBERRA, November 14. Substantial reductions in indirect taxation are provided in the Budget presented to Parliament by the Prime Minister, Mr J. B. Chifley. These include concessions of £16,000,000 in sales -tax on clothing,- household drapery, and other household items, and £4,000,000 in Customs xnd excise duties. Practically all essential commodities entering into the living standard will be exempt from sales tax. ‘ Sales tax concessions are:—Clothing, household drapery, soft furnishings, and yarns (present rate 7$ per cent.), completely. exempt. A reduction from 124 per cent, to 10 per cent, in the general field of household articles, and a reduction from 25 per cent, to 10 per cent, in household goods of a less essential character.

Mr Chifley announced the abolition of the special War Customs Duty and primage duty on plant, equipment, materials, and minor articles used for manufacturing processes in Australia. Customs and excise duty on petrol has been reduced by one penny a gallon. These concessions, costing about £25,000,000 this financial year, brought the total value of tax reductions for 1946-47 to £37,000,000. Mr Cliifiey added that the gap of £59,000,000 between the estimated Government expenditure and revenue for r,he coming year would have to be met from loans. Stating that the first stage of postwar transition had been completed successfully, Mr Ghifley said that, in the 15 months since hostilities had ceased, the Australian war organisation bad been largely dismantled. SECONDARY INDUSTRIES, In August of this year 7 70,000 people were employed in factories throughout Australia. This was 20,000 above tbo war-time peak, and 230,000 above June, 1939. “Clearly we are developing our potential in secondary production, which is capable of not only meeting a much wider home demand, but also of supplying markets abroad," he said. “We have held prices in check, and we have reduced our overseas debts. London funds held by the Commonwealth Bank at the end of October total £218,000,000. Many problems, however, remain; and the burdens have yet to be borne.” Mr Chifley said the various commitments arising from war and its aftermath had still to be met. The danger of inflation was still present and as formidable as ever, and the fight against it must be carried on. Pointing out that there were elements in the overseas situation that would have to .be closely watched, Mr Chifley said that production in the exporting countries could be expected to expand fairly rapidly. “We must lose no opportunity to increase our overseas earnings from exports of both primary and secondary production," he said. “At the same time, in order to guard against any adverse turn in export prices, excessive costs in those industries must be avoided.”