LOWER TAXATION.

Hawera Star, Volume XLVIII, 9 July 1924, Page 8

LOWER TAXATION.

-HR. MASSEY FORFC-UTs REDUCTIONS. , Reductions of Luxation i-jiallimr about Ai.dGJX-'iU are proposed by d;o Prime Minister. In an interview !w ■'aid he would like lhe-e to include the tobacco duty and railway luresand freiglits. Ihe tenor of ins remarks indicated that he proposed to make concessions a iso in land and income tax. .a. ' ,mpie statement in regard Lo re-mis-ions of taxation, made |>v Die Prime alim.-Aer at a banquet- on Sotur’■l!y wd. !o subsequent amnliflcaiinu of his propo.-al, in response to u ~e _ qiicst by a representative of the Dominion

"! indicated. at the bauqimt that if I got the Hou: ; , e ln g OOC [ humour I wouid reduce the taxation on the country by an amount, imt perhaps as groat as the surplus of ;1 million and twee-quarters, but something approach nig that amount,” he said. “Can you indicate the measure of the remissions you propose; that is, how they will be ‘spread’?” Air. Massey was asked.

‘ That point needs developing,” he replied. “What we term the ordinary man doe s not pay income tax. He im’s exemptions, with a family, un to -Mod per annum. By the present system of taxation under which we work—and winch, I believe, it is impossible to avoid—when the man who is handling comparatively large sums of money, that is, the merchant or big company is called on to pay heavy taxation he naturally passes it on to the people wdm whom lie-does business. Many of these people, of whom a goodiv proportion arc country people, have not been a ue to employ the labour that is necessary to develop their properties and .-.eep them up to the full stage of production.” 1

Mr. Massey went on to sav that a recommendation of the 1922 'Taxation Committee specifically dealt with the taxation oil ]and-ho!der s in this ciass. Ihe report in question was unanimous m recommending that discretion he given to tiie commissioner, hv legislation to remit tiie whole or part of land tax levied on rural, lands which,* though Worked in a proper and workmanlike manner, did not' produce sufficient, intei- deducting expenses of worldim (including local rates, but not inclruT mg interest on mortgage of land or stock, or interest upon the value ,of such land and stock, if unmortgaged) to pay such tax in whole or part." Legislation passed last session remitted income tax on lands that were used tor agricultural purposes, and mado cercam exemptions in the land tax It would appear from Mir. Massey's statement- that he contemplates further land taxation remissions.

“Do you propose that there will he any further remission 'of taxation on companies?” ‘‘Companies will benefit the same as anyone else,” Air. -Massey replied. they will benefit to a greater degree it you regard the company as a iniit because the greater the amount of income tiie higher the taxation There are two items that affect the people on \i inch I would, like to make remissions I would like to reduce freights and iaies on the railways, and I would like to reduce the tariff on tobacco.” • The duty on tobacco was raised «-encraby m the 1921 tariff from Us Gd U) 4s 8d and 4s lUd per lb., in the case of plug and cut tobacco, but there- was a. considerable increase— from 3s fid to 19s per lb.— on fine-cut tobacco, suitable for the manufacture of cigarettes. r ft was explained by the Government at the time the tariff was before the Hoime, that the object of the increase to Ids was to get another £IOO POP revenue from that item aione. The iie.iiy increase in the customs revenue lor 1923-24. which realised X 7.238.21/).. a.s compared with .00,032.292 lor 192”-23,"-which was the financial year following Ibe introduction o‘ the amended tariff is apparently the justification fo,Mr. Massey's suggestion for a. remission in the case of the dutv cm touacco.

“As j have indicated in niv public ud-dres-e.s recently, ib is chiefly in luxurcis I lull, the (Juslums revenue has grown p, such lame dimensions,” concluded I ho ! rime Minister, who remarked ilni d was pray Fir-all y a present to him as Minister of Finance. The chief

articles and com mod dies uu which tiie revenue from the customs had been swelled la-1 year were moiny vehicle-', spinis, sdl-s, and the more luxurious uiTicle.-j ol wearing appnrol, :