EXTENT OF EXEMPTION.

New Zealand Herald, Volume LXIV, Issue 19738, 10 September 1927, Page 10

EXTENT OF EXEMPTION.

GOVERNMENT'S PROPOSALS. TAXATION OF FARMERS. CITY DWELLER'S POSITION. [nr telegraph. —special reporter. 1 WELLINGTON, Friday. At a late hour the Minister of Finance, Hon. W. Downie Stewart, moved the third reading of the Land and Income Tax Amendment Bill, which provides that (he £3OO exemption shall begin to disappear at. £450, instead of at £6OO. Mr. M. J. Savage (Auckland West) criticised the present incidence of taxation, which required one section of the community to pay the taxes of another. The city man had to pay land tax on his property, and also a tax on his income, while the country man paid only the land (ax. The exemption of income derived from the land was indefensible. The Hon. W. Nosworthy: Would you favour the substitution of income tax for the graduated land tax ? Mr. Savage: 1 would not. There has been too much of that business already. Mr. Nosworthy: A lot of the big landholders pay income tax at the present time on income derived from the land. Mr. SaVage: All .that is received from that quarter would uot amount to much. ' "An honourable member," said the Prime Minister, "made me say that the ability of the farmer was such that he is not capable of making out income tax returns. 1 have never suggested any such thing. He has made me say, also, that the intelligence of the farmer is so far below that of the city dwellers that 1 thought it an unreasonable thing that he should have to make out his return." Mr. Coates pointed out that the member had no knowledge of the difficulties of income tax as applied to the farmer. The department and the Minister of Finance, as the result of special inquiries, had sufficient evidence to show that the calling for income tax returns was an annoyance, that it was unnecessary in that a great bulk of the farmers would not be liable for payment, and that it was resented. The only opportunity the farmer had of keeping his books was after the long day's work was over, and he remembered his own experience of falling asleep when making out the return. The Minister of Lands, Hon. A. D. McLeod, said there was hardly a large landowner in New Zealand who would not prefer to pay income tax instead of land tax. They had to pay more in land tax whether they made money from a property or not. The bill was then passed. TARIFF REVISION. RESOLUTIONS ON TUESDAY. [by telegraph.—special reporter.] WELLINGTON, Friday. An announcement that the tariff resolutions would be introduced on Tuesday was made by the Prime Minister, Mr. Coates, in the House of Representatives this evening.