TAX REDUCTIONS

Hawera Star, Volume XLVI, 17 April 1926, Page 5

TAX REDUCTIONS

PROPOSED FOR CANADA.

A GOOD YEAR ENDED. PREFERENCE TO BRITAIN. BY CABLE—PRESS ASSOCIATION—COPYRIGHT. OTTAWA, April 15. Mr J. A. Robb. Minister of Finance, in bringing - down tlie Budget to-day, announced' tax reductions affecting all classes, and/ estimated. at 25,000.000 dollars, chiefly on income tax. Reviewing the finances of the Dominion, Mr Robb stated that the ordinary revenue had increased by 29,965,530 dollars, that there was a surplus qf ordinary revenue over ordinary expenditure amounting to 55,000,000 dollars, and that the national railways earned 33,000,000 dollars in excess of the operating and income charges, exclusive of interest. Canada’s trade showed a favourable balance of 402,000,000* dollars, constituting a record for many years. Since the war income tax exemption had increased from 2000 dollars to 3000 dollars for married men without dependents, and from 1000 to 1500 dollars for single men. Penny postage throughout Canada will be resumed on July 1. The duty on -automobiles of a retail value ofnot more than 1200 dollars, and on motor trucks, will be reduced , by 20 per cent., the general tariff by “■“V 174 per cent., and the intermediate 7 tariff by 124 per cent. To maintain British preference on ' automobiles valued at more than 1200 dollars, the general tariff will be reduced. To encourage the Canadian automobile industry, a drawback of 25' per cent, will be paid on materials used in manufacture, provided at least 50 per cent, of the cost of the finished article is produced; in Canada. The Minister announced a surplus of 22,353,000 dollars towards the reduction of the debt over all services, and that the British preferential tariff will apply to goods conveyed direct and without transhipment after January 1 next.