Opposition to Land Tax Proposals

Manawatu Times, Volume 61, Issue 189, 12 August 1936, Page 4

Opposition to Land Tax Proposals

Meeting in City Voices

Concern

PROTEST TO BE SENT TO MINISTER A meeting representative of business firms, farmers, and trust estates, was held iu Palmerston North yesterday to consider the land tax proposals of the Government. Mr. M. 11. Oram was voted to the chair. In explaining the object of tho meeting, the chairman said that meetings ot protest had been held elsewhere and it was intended to make personal representations to the Government as to the undoubted anomalies and hardships imposed by the graduated tax as at present proposed. Instances were given where business firms which owned their own shops would suffer considerable hardship. Farmers and trust estates would also be greatly affected by the new rates, which would be out of all [proportion to the income received by Uie parties concerned from the land in question. A strong committee was set up to collect instances of iocai cases of hardship, and to co-operate with other centres in making personal representations to the Minister. Chamber of Commerce Attitude. The effect upon the business community of the proposed graduated tax on land was also considered at a meeting yesterday of the council of the Palmerston North Chamber of Commerce. The Canterbury Chamber of Commerco advised that a local committee had been set up to make representations to the Government regarding the incircncc and hardship of the land tax proposals. Other centres were asked to advise of any similar action being taken. Mr. Oram reported on a meeting held earlier that afternoon to consider the proposals. Land was held by business firms in the cities not for speculation but as a vital asset to the conduct of their business. The proposed tax, as it applied to urban land, was notning less than a super income tax, ana would nave drastic effects on enterprise unless the proposals were modified. Mr. Oram moved: “That this council asks the Government to review tho graduated land tax proposals in the Budget, and to arrange in the Taxation Bill to modify tho undoubted inequalities and oppressive demands, especially so far as commercial and business houses are concerned.” Explaining the application of the proposed tax, Mr. Oram said a person owning land worth £20,000 would be called upon to pay three times as much lax as previously. Other examples were cited to show the heavy increases at various levels. Beneficiaries under estates not saleable at present would bo severely taxed, the holding being rated as a unit. Business firms owning land iu various parts of the country would be seriously affected and would either have to pass on the increases or go out of business. Business houses owning their own premises would be paying in effect more income tax; others would inevitably suffer ail increase in rents. There was no doubt the additional tax would have to be passed on, said the president, Mr. A. J. Graham. Mr. Oram’s motion was unanimously supported.