TAXATION REDUCTION

Manawatu Standard, Volume LIII, Issue 231, 28 August 1933, Page 6

TAXATION REDUCTION

prospects of the session. UNEAIPLOYAIENT FUND INCOME. <»>• isss” Recent sessions of Parliament have been viewed with trepidation oy the taxpayer, who always fenicd that further burdens. would be onposed iin the narrowing circle of thos 9 . ! enjoyed taxable resources which could be tapped. The .coming session presents a less alarming prospect, tor the concern of the Government will no" be to discover safe means of reducing the taxation burden. On present indications, there appears no clear way to concessions in respect to ordinary taxation, for the reason that the pegged exchange liability is obviously heavy, and its extent is not closely predictable. The more the credits pile up, the greater the interest bill on the money borrowed to acquire them at the high rate. . But for the record number of registered unemployed, there would by Jns time have been Alinisterial bints ol the possibility of reducing the emergency unemployment charge of Is in the i. on salaries, wages, and other income. Jt is well understood that the Government would like to make some concession in this respect, but is being deterred by the increasing obligations. If general industry revives in line with the steady improvement in prices of exported commodities, a reduction in tlie unemployment tax may be expected, because the fund is showing very satisfactory signs of elasticity, the income for the first three months, of this financial year showing an improvement, over the corresponding period of 1932, amounting to £305,359, despite a much heavier expenditure. A STRONG POSITION. Full details of the income and expenditure of the Unemployment Fund are available, and the latest figures cover the period of three months to June 30. First come the details of resources distinct from the current income for that period, viz: £ Cash balance at beginning of year 323.143 Imprests outstanding 1,2<7 Securities held 100,000 Total (shillings omitted) .. £424,428 The above total compares very favourably with the corresponding “reserve” resources of the fund at the same point in 1932, when the total was £154,96G. The most impressive feature of the accounts is the strength of the current income for the three months, the details being as follow : £ Unemployment levy 147,029 Emergenev unemployment charge 1,157,000 Fines 82 Interest on investments 837 Repayments of loans 2,955 Total (shillings omitted) £1,307,904 The quarter’s receipts in 1932 amounted to £942,545, or £365,359 less than the recent quarter. The most notable increase has been in the emergency unemployment charge, receipts from which improved by £323,G7l in three months, due to tlie increase from 3d in the £ to Is in the £, a change which did not operate until after the first quarter of 1932. UNEAIPLOYAIENT EXPENDITURE. While the income figures for tlie quarter show such a great enlargement, the increase in expenditure is even more striking, for it was over half a million more last quarter than in the corresponding period of 1932. The expenditure for three months ended 30th June is given below, with that of the first quarter of 1932 in parentheses : £

Unemployment expenses (£2,021) 3,037 Grants (£135.106) 612,057 Loans (£3,106) 3,817 Food, clothing, etc. (nil) 29,346 Sustenance payments (nil) ... 6,281 Total (£140,234) £654,575 The cash resources at the end of the quarter, though substantial, did not disclose the same extent of increase as the expenditure. At June 30, 1932. the Unemployment Fund was in credit to tlie extent of £937,277, while at the end of June last its reserves were as follow: Cash in hand, £785,924 ; imprests outstanding £ISS,829; securities invested, £100,000; total, £1,077,754.