NORTHERN ADVOCATE DAILY With whcih is incorporated the NORTHERN MAIL DAILY Registered for transmission through the post as a newspaper. FRIDAY, MAY 27, 1921. REDUCED TAXATION.

Northern Advocate, 27 May 1921, Page 2

NORTHERN ADVOCATE DAILY With whcih is incorporated the NORTHERN MAIL DAILY Registered for transmission through the post as a newspaper. FRIDAY, MAY 27, 1921. REDUCED TAXATION.

The executive of tho Canterbury Shecpowners' Union i-s reported to have passed an interesting resolution deal in£ w ith taxation. It urges tlu Government to use every endeavour t< reduce taxation during the next session 'of Parliament, and "by means of rais ing lonns, or otherwise" to place a share of the burden of the war on future generations instead of "placiug it wholly on the shoulders of the present-day taxpayers. M The propo-sal that loans should be raised in order to take a portion of the present burden off the taxpayers' shoulders is certainly ; an interesting one, if not a particularly useful one. Most people probably think that, the Dominion is carrying enough loans already. Huge war loans now current will continue to run for twenty or thirty years, and it is quite probable that when they mature "they will simply be converted into new loans. This means that the people of this country may take 50 years, or even longer to discharge their war debts, so that the present-day taxpayer can scarcely be yaid to be carrying the whole burden on his own shoulders. Those who come after him will certainly have to take a shave of the load, and the generally accepted view is that the country's interests can bo served best by lightening the burden placed

ilpo.ii the gen.err.tipns tq Qcizje. The TTftT has caused a very s&vere loss, anu the beet course is to Tvipe out itn effects as rapidly as possible. While the great conflict was in progress the people of Ihi-i country, and those of (h<? Old Country in -till greater degree proved themselves capable of meeting l'.'ir heavier financial calls than anyone had ever 'Ireaaut of, and it is obviously sound policy that still persuades them to tax their resources to ihe limit of their capacity. But it must be clearly understood that, there is a limit, and since the. latest, financial returns indicate <he opssibility of an attempt to exceed that limit, the sheepownc-r-s' plea for reduction of taxation is timely. It is certainly very necessary thM the continual increase of both direct and indirect levies upon the people should come to an end. The revenue collected by the Government during the last financial year, as we learnt a week ago, far exceeds the total for any previous year, the-taxation revenue being about one-third larger than it wns during 1010-20. The latest returns do not show the receipts from the- totalisator and amusement iaxes., hr.t if they are taken ns equal to those of the previous year we find that the taxation collected during 1920-21 way equal to £19 0s lcl per head of population. In 1908 Xew Zealanders were taxed at the rate of £5 0s 4d per head, and the increase in the nest .six years Was only 9s Sd per head. In 1919-20 the average contribution to the Treasury by way of taxes was £14 12-j 2d, a7id last year there was an addition of nearly £5. There was, of course, an increase of three millions and a half last year in the revenue from indirect taxation, Jrigh-priced goods being imported in excessive quantities. But the receipts from direct taxation showed an increase of nearly two millions and a half, which raeaivt an addition of more than £2 per head to the country's burdens. The direct taxation tp be collected during the current financial year will not be a great deal less than the amount taken last year, for this year's income tax is paid on last year's incomes. There will, however, bn a marked decline in Customs taxation this year, and the direct taxes probably will produce far les* next year rthan they will this year. This mean* that the Government will find it very difficult within the next few months io frame proposals for lightening- the demands to bo made upon the taxpayers next year, as the Canterbury .shocpoHiiers urge it to do. Yet present conditions indicate that taxation at the rate of even £15 per head next year would be too heavy a burden for the country. Reduction will be essential, but it should not be effected by means of a postponement of the nr.itional liabilities. The surest means of lighteni ing the burden is economy in the public expenditure. Interest charges and pensions cannot, be reduced; the saving must be made in the •ulmini.s.tration of the various Departments of State. Growth in tho departmental expenditure is natural and proper when 'the various public services are increasing their activities in order to promote the development and progress of the country but the growth during recent years ha*' been beyond reason. Departmental expenditure in 1916-17 was nearly a quarter of a million greater th?.n in i915-IG. The 1917-18 increase was nearly half a million, in 1918-19 it exceeded one million, and in 1919-20 it was just under three millions. Last year there was an addition of £3,441,141 to the departmental expenditure, and • it seems to its that so great an increase is utterly unjustifiable. Dra.stic action is necessary to chock the increase and •to promote reasonable economy in the Public Service, and it is only by tho exercise of the utmost care in this re--pect tint the Government will be able to reduce taxation.