TAXATION BURDEN

New Zealand Herald, Volume LXXII, Issue 22247, 23 October 1935, Page 12

TAXATION BURDEN

SOME RELIEF LIKELY IMPROVED FINANCES GOVERNMENT'S 'HOPES HINT OF PROMPT ACTION" [BY TELEGRAPH —SPECIAL REPORTER] WELLINGTON, Tuesday „ Some furthqr relief to the taxpayer, apart from the provisions made in the Budget, is likely to be granted in the second Finance Bill of the session, which will be introduced in the House of Representatives by the Minister of Finance, Mr. Coates, this week. As yet there is nothing to indicate what form* of taxation may be affected, but thn likelihood of some reduction in at least one avenue is confidently expected. Since the presentation of the Budget the financial position of the country, which was even then reasonably bright, has undergone a further improvement. This was reflected in the decision of the Government to make the 7\ per cent restoration in civil servants' salaries retrospective to July 31 and also to grant substantial retrospective increases in pension rates. Higher Export Prices It is known that the marked upward trend in export prices is viewed in a most hopeful light and that the greatly improved tone of the butter market in particular is regarded as a most encouraging sign. In view of these facts it may well be that Mr. Coates will have a much larger surplus than tha £13,500 estimated in his financial statement. Before the Budget appeared Mr. Coates was asked by business interests to review the sales tax with a view to its abolition or reduction. Another re-" quest was from gold mining companies for the abolition of the export duty on gold, while there was also a • fairly general demand for some revision of income tax rates. During the financial debate in the House, several members, most of them Government supporter* representing city constituencies, appealed for the removal of the primage duty on imports from the United King, dom. They pointed out that at Ottawa an undertaking had been given that this form of tax would be abolished as soon as possibly. Possible Adjustments Those are the forms of taxation in which it appears reductions may bo considered. The Annual Land and Income Tax Bill has already been passed this session, retaining the rates in force last year, but it is known that when the Budget was in course of preparation some consideration to a possibll adjustment of inconfg tax as it affects unearned income. If something of this nature is now, projected it is quite competent for amendments to the Land and Income Tax Act to be made in a Finance Bill. One section in the Budget stated that the Government was not unmindful of the fact that the burden of taxation was heavy, and it was regretted i that there was not sufficient scope to make further reductions. It was added that with the increasing progress being made toward economic recovery a substantial reduction in taxation should not be long delayed. According to pres-ent-indications, there should be definite proof very shortly that this hope is being translated into action,, by the Government with admirable promptitude.