TAXATION PROPOSALS.

New Zealand Herald, Volume XLIX, Issue 15097, 13 September 1912, Page 8

TAXATION PROPOSALS.

ASSESSMENT. BILL AMENDED. GRADUATED TAX BY" ANNUAL BILL. (BY TELEGRAPH — CORRESPONDENT. Wellington, Thursday. Numerous amendments have been made in tho Land and Income Assessment Amendment Bill by the Public Accounts Committee, by which io was reported to tho House of Representatives this afternoon. In its amended form, the Bill was referred to the Lands Committee. Tho principal amendment is the deletion of ilie schedules determining the rates of ordinary and graduated land tax and the rates of incomo tax, and also of the clauses relating to them. New clauses havo been inserted proposing that tho rates of graduated land tax and income tax shall be "set forth by Acts,"which may from time to time bo passed." Tliero is a new clause to exempt from tho payment of graduated land tax any company whoso principal objects aro of a manufacturing or mercantile nature, and any company whoso principal object is tho lending of money, unless it owns or ; holds land other than its business premises. The determination of tho Commissioner of Taxes as to whether any company is to bo so exempted will be final and conclusive.

The proposals that tho income of a married woman shall bo joined with that of her husband for income tax purposes have been strncU out.

Another new proposal relates to flax land. It provides that when estimating the nil improved values of land on which flax plants are growing l the ValuerGeneral shall include the value; of the roots of the plants, but not the value' of the leaves growing from the roots. This section is to come into operation oil April 1, 1913.

Tho deletion of the provisions relating to graduated land tax was explained by tho Minister for Finance (Hon. James Allen) (his evening. He told a reporter that when the Bill was before the House for its second reading several members suggested that the scale should not be permanently fixed, but decided by annual Acts, as has been dono in the past. The Government has agreed to that course, and a Land Tax and Income Tax Bill will be brought down containing the graduated land taxation proposals made in tho Assessment Bill, and also the scale for income taxation. The Taxing Bill will be introduced as soon as the Assessment Bill has been dealt with.