Manawatu Evening Standard. THURSDAY, AUGUST 16, 1928. SOME TAXATION POINTS.

Manawatu Standard, Volume XLVIII, Issue 221, 16 August 1928, Page 6

Manawatu Evening Standard. THURSDAY, AUGUST 16, 1928. SOME TAXATION POINTS.

In his review of the financial position last week, the Minister _ of Finance expressed his conviction that the people of this country “may look forward with confidence to increasing prosperity,” which “will reflect itself in the public revenues,” and so “enable a reduction- in taxation to be made in the near future.” The Minister’s conviction, it may be hoped, will resolve itself into actuality; for if there is one thing- more than another that the country needs at the present time, it is relief from the burden of taxation which rests heavily not merely upon business men and business enterprises, but upon the individual. On the per capita principle the New Zealander seems to be in a better position than his kinsman in the Australian States, as New Zealand’s taxation revenue last year only worked out at £ll 8s 5d per head of the population, against an average of £l4 2s for the Commonwealth and the Australian States, with an average, in New South Wales, of over £l6 per capita for State and Commonwealth taxation combined. Mr Stewart does not, however, attach any great importance to this method of assessing the taxation burden of any cquntry, for he says: “In my opinion it is fallacious to divide the total tax revenue by the population and draw any inference therefrom as _ to whether taxation per head is high or low.” That is borne out by the fact that the income tax is still levied on comparatively high rates on a limited proportion of the pedple and, with the shrinking incomes of last year, the collections actually fell from £3,422,216 in 1926-27 to £3,273,729 in 192728, the tax, however, being felt none the less severely by those who have to pay. . As business picks up and the improvement in industry continues, better returns may be looked for during the current year, and it is to be hoped for some succeeding years. The' income tax for the year showed a decrease of £148,487; the Customs revenue declined by £309,986 largely as a result of the remissions ; iand tax fell short of the previous year by £74,588 and even beer duty declined by £12,189; the only actual increase being in respect _ of stamp and death duties, Avhich advanced by £125,351, so that, from the revenue producing standpoint, the result of the year’s taxation must have been more or less of a dis-

appointment to the Minister of Finance, the taxation receipts falling by over £400,000. No change of .Government that can possibly result from the general election this year is likely to afford greater relief from taxation than Mr Downie Stewart hopes to effect, for the Labour Party’s programme, which the Labour Socialist leader has declared would be in force within three years fx-om their return to office (if they rdach that very desirable position) would add anything from £16,000,000 to £20,000,000 to the national expenditure, every penny of which would have to be provided by the taxpayer if he were capable of bearing the burden.