ACCOUNTS AND TAXES

New Zealand Herald, Volume LXXIII, Issue 22580, 19 November 1936, Page 10

ACCOUNTS AND TAXES

Returns for only half of a financial I year are not an entirely reliable ; guide to the probable results for the j whole year. Revenue does not come jin with a smooth and steady flow. I Similarly expenditure is greater at some parts of the year than at others, and these seasons of heavy spending do not always correspond. The figures do, however, give certain indications of the trend of the year's fortunes. Those for the first half of 1935-36, which have just been gazetted, suggest that the tion of substantially higher revenue, on which the Budget was based, is quite likely to be realised. The Minister of Finance relied wholly on a heavier collection of taxes to raise his revenue to the level required to meet the expenditure in his Budget of more than £30,000,000. With customs duties up £815,000 for the half year, and sales tax £275,600 higher, his estimated increases of £938,800 and £437,400 for the year should be realised without difficulty. The two items where higher rates were imposed, income tax and land tax, do not figure largely in the accounts for the first six months. Other items, without exception, show increased collections, so the revenue can properly be called buoyant. This is very satisfactory from the viewpoint of the Minister and the Treasury, but since the Budget was delivered there have been examples of different methods of financing. In Australia the balancing of Budgets has been accompanied by relief for the taxpayer. The Federal Treasurer this year gave concessions amounting to £5,275,000 for a full year. In various States there have been similar remissions. In New Zealand improved returns from existing taxes have not satisfied the Government. A further turn has been given to the screw. The accounts even for the six months reveal how burdensome the cost of Government has become, how pressing is the need for the relief that is nowhere foreshadowed.