DOMINION'S WAR BUDGET.

New Zealand Herald, Volume LII, Issue 16007, 27 August 1915, Page 4

DOMINION'S WAR BUDGET.

1 nun AND INPfIMF tivc& IMPRPAQPII n i7B SttS s 5 an. Hal km S ill BBS SB£a k a su sf 6m b Bib S fesr En f ■ 8» E 1 FARMERS TO PAY ON INCOMES. HIGHER RAILWAY CHARGES. HALF-PENNY EXTRA ON LETTE K LOCAL LOAM OF £2,000,000.

[BT TELEGRAPH. —SPECIAX CORRESPONDENT.] WELLINGTON, Thursday. The first Financial Statement of- the National Ministry, submitted to the House of Representatives this evening, makes important taxation proposals to meet the cost of the war and the increase in the general expenditure. The taxation proposals are framed to yield £2,032,600. Specific increases are : —

The land tax to be increased by the addition of 50 per cent, to the present r3tes of graduated tax on country lands. The increase in the income tax will be obtained by an extension of the existing schedule of graduated rates from Is 4d to 2s, which rate will be reached at £5000, and the imposition of a super-tax of thirtythree and one-third per cent, to the schedule rates. This will give a rats varying from 8d on the lower taxable incomes to 2s 8d on the higher Ones. The income tax is to apply to income derived from land. Five per cent, of the capital value of the land will be deducted from the assessment of the income, and the exemption of £300 will also be allowed. War tax of 2i per cent, on totalisator dividends. The initial rate on telegrams to be increased by 2d, the same sum to be added to the inland charge for cablegrams; the initial charge for bureau commrnications within a radius of 25 miles to be 6d for both subscribers and non-subscribers; war tax of one-halfpenny on all articles posted except newspapers. The railway passenger and goods rates will be increased to the extent of £360,000 per annum by the raising of passenger rates by eight and one-third per cent., and goods (excepting timber) by 10 per cent. An all-round duty of 10 per cent, ad valorem on motor-cars, and 50 per cent, additional on cars made in countries which are now or may be enemy countries. Bicycles, which have hitherto borne a duty of 20 per cent, if British, and 30 per cent, if foreign, will be reduced to the same rate as motor-cars, with the same conditions as regards enemy countries. A duty of 4d per gallon on motor spirits and kerosene. Excise beer, which has hitherto paid 3d per gallon by means of stamps attached to the casks upon delivery from the brewery, will be taxed by an entirely new method. The Government's proposal in regard to the beer tax alters the system chiefly to ensure that lighter ales — that is, ales with less alcohol in them—should be manufactured in New Zealand. The duty will be assessed on the quantity and with respect to the specific gravity of the worts pitched for fermentation. The worts of low gravity will pay a minimum duty, which will increase with each unit cf rise in gravity. Spirits will be increased from 16s per proof gallon to 17s per proof gallon. An excise duty of Id per gallon on all non-alcoholic beverages to be defined. Duties on assessable instruments mentioned in the second schedule of the Stamp Duties Act, 1908, to be increased by 25 per cent. Banknote duty to be increased from 15s per cent, to £1 per cent. The duty on bank cheques to be raised from Id to 2d. The duty on receipts to be raised from Id to 2d. Death duties are to be extended by reducing the exemption of £20,000 for each child to £5000, and imposing 2 per cent, on successions over this amount. A stamp duty of 5 per cent, on mortgages of land; on release, reconveyance, or discharge of mortgage, a fixed duty of 10s. A new stamp duty on all sub-sales of- property.