TAX REDUCTIONS.

Hawera Star, Volume XLVIII, 25 August 1924, Page 5

TAX REDUCTIONS.

THE PROSPECTS SURVEYED. HEAVY PUBLIC SERVICE LIABILITY. (By Telegraph.— Special to 'Star). ~,, WELLINGTON, Aug. 24. iixe I lime Minister informed vour correspondent tha.t he intends^to introduce .the annual Taxing Bill and an amendment of the Land and Income at''-* 1 !. 1 t 'V e lirst wee h in Septemei • ,' Vlt h these measures the most important business of the session will commence The House has sat for eight weeks, but its legislative product has been slender. The most important measure to date, the Mortgages bnial Extension Bill, is still before the i üblie Accounts Committee, which has not quite completed its overhaul of the Estimates, and has not dealt with the moiatorium. Anticipations regardin«■ the taxing Bill go in the direction of a fairly substantial reduction in the ordinary income tax, but it is not likely that the Government will alter the law in .regatd to company taxation at present, as it is the official opinion that such a measure of relief as can be given under the present financial conditions will come through a reduction of the ordinary scale of income tax. Ihe land tax will be eased and provision made for correcting the extraordinary anomaly under which leaseholders of large areas of Crown land, though drawing substantial incomes from it, are exempt from either land or income tax.

. A factor causing the Government to pursue its tax reduction proposals with added caution is the reclassification of the public service, which has just been completed. This, together with the annual increments, is going to add not less than £500,000 to the annual cost of the public service. Some additional expenditure may also have to he undertaken as a result of the forthcoming recommendations of the Railway Board.