TAXATION BILL.

Grey River Argus, 2 September 1927, Page 5

TAXATION BILL.

SOME CHANGES COMING. FOR INCOMES AND CUSTOMS. (Special to Argus.) WELLINGTON, Sept. 1. , In explanation of the Government’s alteration of the basis of taxation, Hon Mr Downie Stewart to-night said, when moving the second reading of a Land and Income Tax Annual Bill, that the tax increases made during the War, and the subsequent decreases since 1921, had upset seriously the fairness of the graduation. Some incomes were actually paying a lower rate now than before the war, while others paid over 200 per cent, more than pre-war. A regrading was made in this Bill. It did not impose an extra burden on. the small men, nor did it afford any relief to the highest .grades. It was between these two ■that a more equitable scale was secured. The man with £4OO a year still paid £2 12s 6d if he had no children, and no tax if he had two or three children. The man with £450 still paid no extra tax. The advantage of the regrading was that it was a neces sary preliminary to any consideration of reductions in taxation. . Otherwise an attempt at reduction would create further anomalies. A further consideration was that this readjustment should 'be considered in conjunction | with the revision of the tariff, where She hoped th effect concessions to a i greater extent than any incidental increases in revenue that, would resuL from this regrading of income tax.