WHO PAYS THE TAXES.

Hawera Star, Volume XLVI, 29 January 1927, Page 4

WHO PAYS THE TAXES.

LAND AND INCOME-TAX DETAILS NEW ZEALANDERS’ AVERAGE INCOMES. SPECIAL TO THE STAR. WELLINGTON. Jan. 29. Next to the Customs, the main sources of income for the general government are the land and income-taxes. These are subject to the most careful and detailed analysis each year by the Government Statistician, who deals, ot course, in classes,. and not with individuals. From the survey of the 1925-26 tax returns, a valuable review has been obtained. Incomes under £3OO are completely exempt from tax, and the exemptions run further up the scale, so that a good deal of the income of New Zealanders does not come within the scope of the tax collector. However, this department dealt last year with over 80,000 returns, eliminated a number as being below the taxable mark, and left a solid residue of 43,822 taxpayers who between them confessed to a gross income of over 52 millions sterling. The importance of exemptions is seen when it is mentioned that the actual taxable balance was reduced to 29 millions sterling. From what sources was this income derived? The survey makes (the following disclosures, assessable income being indicated in Salary or wages 16,510,119 Professional or own account 3,072,742 Commerce, trade or business 15,749,987 - Industry or manufacture .. 3,622,773 6 Farming .551,187 Transport or communication 854,396 Building or construction ... 902,369 Mining or extraction 189,967 Investments, etc 11,075,875 Entertainment, etc 103,073 Exemptions operate so freely on the lower scales. that only 36 per cent, of those with incomes between £3OO and £4OO were required to pay tax. Nearly two-thirds of all the exemptions were given on incomes under £SOO, and it is interesting to see what was the ultimate result in taxation per £1 of the assessable income, according to classes: Per Per £1 of Class Taxpayer, income. £ s. d. Persons, firms, etc. ... 25 12 Companies /.. 736 3 9 Agents for debentureholders 313 3 1 Non-resident traders . 26 3 2

It is pointed out that the effect-of the non-application of exemptions and the progressive rate of the tax is strikingly shown in the case of companies, which paid 644 per cent, of the 'total taxes. The average income between £3OO and £4OO pays less than id in the £l, while the £IOOO earner up to £2OOO paid lid in the £. LAND TAX AND EXEMPTIONS. The value of land dealt with, in ,the last land tax returns was seven millions sterling more than in the previous year, the total being £228,522,000 of unimproved value. Farming and allied pursuits accounted for over 344 millions, commerce and trade for 16 millions of land value, while miseelalneous and unspecified (which it is believed covers much rural land) represented a total unimproved value of over 49 millions. The exemptions from tax due to mortgages on the land accounted for '’the elimination of over 13 millions sterling from the taxable value, while hardship disposed of £168,275, which is a small reduction on the total of the previous year. Mortgages eliminated over 69 mil- . lions sterling of value, and of this *4 amount farmers held 52 millions The high unimproved value of land held by companies and banks is shown when the average tax per £10!) of taxable balance is examined. This is indicated in the report as follows: s. d. Farming 14 6 Professional 13 13. Manufacturing and industrial .. 17 6 Commerce and Trade 21 5* Banking, insurance and finance 52 7 Transportation - . 13 11 Miscellaneous .. : 14 3 The average tax per taxpayer worked out at £23, and the average tax over the taxable balance was 15s 8d per cent.