Manawatu Evening Standard. SATURDAY, JUNE 12, 1926. TOO MUCH TAXATION.

Manawatu Standard, Volume XLVI, Issue 164, 12 June 1926, Page 8

Manawatu Evening Standard. SATURDAY, JUNE 12, 1926. TOO MUCH TAXATION.

O.\E of the matters the Government ought to take in hand, if it is not already prepared to do so, is the reduction of taxation. On the five main lines of taxation the published accounts show an increase in the amount drawn by the State from the pockets of the taxpayers last year of no less than .£82,070 as compared with the previous year. Rut there are other items of which accurate account cannot be taken until the Minister of Finance brings down the Budget in the House of Representatives during the coming session. Customs collections show the biggest increase and stamp and death duties also return a larger amount than in 1924-25, the increases being £874,488 in respect of Customs and £119,536 in stamp and death duties, etc. The land tax fell short of the previous year’s return by £68,591 and income tax payments were £17,535 shy. The excise collections on beer also showed a reduction of £20,827. The actual taxes collected under the five heads named amounted to £17,008,477. If to that we add the totalisator taxes and other tax collections on the same basis as the 1924-25 totals, we are impelled to the conclusion that last year the people of New Zealand contributed little short of £19,000,000 in taxation, against £16,549,609 in 1924-25. - That is by far too big a burden for the country to be carrying at the present time. The only year in which that total has been exceeded was that of 1920-21, when the taxation collections actually totalled £22,184,414, the higher figure that year being accountable for by the receipt of what were practically two years’ imports in the one year, and by the higher income tax levies. Instead of reducing taxation, we appear to have been increasing it and the position grows more serious as taxation increases, no matter from what source the taxes are derived. The position will, perhaps, be better appreciated if we repeat the figures in tabular form, giving the amounts received under each taxation heading, during the financial year ended on March 3.lst last together with the amount of revenue raised in 1924-25 in respect of items which are included under other than direct taxation headings, and are not therefore available at present:—

Add on basis of 1924-25 Taxes —Totalisator tax 590,385 0 0 Other taxes 1,377,596 0 0

Making approximate taxation 1925-26 ......£18,946,596 0 0 These latter amounts may, or may not, be exceeded; they may even fall short of the previous year’s collections, but not to any considerable extent. Customs collections are necessarily dependent upon the volume of our imports, and rise and fall in proportion to the increase or decrease of import values. More than a third of the Customs revenue comes from alcoholic liquors and tobacco; foodstuffs and non-alcoho-lic drinks only contribute 4.14 per cent, of the total; clothing and textiles 23.51 per cent, and all other articles 37.05 per cent. The tariff is in no way oppressive and bears lightly upon articles in general use, the most heavily taxed imports being articles of luxury.

£ Customs collections 8,383,876 s. 16 d 2 Stamp and death duties. 3,359,867 12 4 Land tax :... 1,266,659 0 3 Income tax ..... 3,368,516 4 i Ilccr duty 629,557 ■ 18 ii Total £17,008.477 11 9