AUSTRALIA AGAIN TO CUT TAXES

Greymouth Evening Star, 20 August 1949, Page 5

AUSTRALIA AGAIN TO CUT TAXES

1 SYDNEY, This Day (Rec. 11 a.m.).—Tobacco, cigarettes, petrol, and a wide range of other goods are expected to be cheaper after the Federal Budget is introduced next month, says the Daily Telegraph’s Canberra correspondent. .' The Federal ’Cabinet last night approved the new Budget, which contains a cut of £25,000,000 in indirect taxation. . ' ’ > ; - The new Budget will cut customs and excise duties by £13,000,000 and sales tax by £7,000,000.

The reduction in the prices of many goods may not last long, because of rising production costs. The chief principle the Government is following in reducing taxation is to try to cheapen the cost of plant and materials to keep down production costs. For that reason lower customs duties will apply mainly to plant and materials from abroad. The Budget will be a peace-time record for expenditure—about £560,000,000 in the year ending June 30 next. 25 Per Cent. Dollar Cut The Federal Cabinet has approved of a 25 per cent, overall cut in dollar imports. The Minister for Post-war Reconstruction, Mr Dedman, made a report

on the London dollar talks, recommending the cut. ‘The Cabinet also decided to ask the Government’s- Dollar Committee to investigate and intensify its efforts to increase Australian’ exports to the dollar countries. It is unlikely that the Government will decide on a dollay loan. It is understood that the Prime Minister, Mr Ch ifley, 1 ’regards this as a last, resort and it is clear from the attitude of Ministers 1 that a dollar loan would not be popular.