THE LAND TAX

New Zealand Herald, Volume LXXIV, Issue 22860, 15 October 1937, Page 13

THE LAND TAX

MR. NASH'S DEFENCE GENERAL PROVISIONS AMENDING LEGISLATION [BY TELEGRAPH —SPECIAL REPORTER] WELLINGTON, Thursday The graduated land tax was defended by the Minister of Finance, the Hon. W. Nash, when replying to Opposition criticism during the committee stages of the Annual Taxing Bill in the House of Representatives to-night. After the mid-summer recess of Parliament, said Mr. Nash, the Government would introduce a bill consolidating the existing taxation provisions where they were good, and making amendments where they were required. Sir Alfred Hansom (Opposition— Pahiatua): Will those amendments provide for increases or adjustments? Mr. Nash: There will not be any increases. No legislation to be introduced will affect the taxation assessable now and payable in February.

The graduated land tax, added the Minister, was not new. It was introduced in 1,891 and had lasted 40 years. From the Opposition benches, there had been an enormous amount of talk about the sum the Government was taking by way of taxation, but in 1920-21 £1,000.000 more than what the Government was taking was collected. Mr. H. S. S. Kyle (Opposition— Riccarton): That was the aftermath of the war. Mr. Nash: This is the aftermath of peace. The Minister said the graduated tax was taken off in 1931 and nothing had been lost by its reimposition last year by persons or companies in cases where the ownership of the land had remained # the same during the intervening period. They were paying now exactly what they had t-cPpay in 1931. The value of land was determined by the net return coming from it after all charges had been met. However, if* the land had been sold between 1931 and 1936 when the tax was low there was a loss to the man who owned the land.

THE MEASURE PASSED DEFEAT OF AMENDMENTS NO CHANGES IN CLAUSES [BY TELEGRAPH —SPECIAL REPORTER] WELLINGTON, Friday Morning Following on the discussion which extended at intervals over three sitting days, the Annua! Taxing Bill was passed by the House of Representatives early this morning. , After the short title had been approved, the Opposition put forward a series of amendments to the detail clauses of the bill. The first aimed at the exemption from payment of income tax of family men whose income is less than £3OO a year, while the second sought to include employment tax payments among the exemptions allowed in determining" the sum assessable for income. The amendments were defeated by 39 votes to 12. A third amendment aimed at the inclusion of a new clause providing for a 10 per cent reduction on all income tax paid on assessable incomes of less than £SOO a year. The proposed clause was also rejected by 39 to 12. The bill was read a third time and passed without amendment. The House rose at 12.50 a.m.

INTERNAL MARKETING PURCHASE OF A BUSINESS QUESTION OF VALIDATION [BT TELEGRAPH —SPECIAL REPORTER] WELLINGTON, Thursday An indication that legislation is to be introduced validating financial transactions involved in the purchase of the firm of Picot Brothers, Limited, by the Government is given in the report of the Controller and Auditor-General, Mr. J. H. Fowler, which was presented to Parliament today.

" In December of last year," states Mr. Fowler, " the Government decided to undertake the internal marketing of butter, cheese, bacon and other foodstuffs so that fluctuations in price to consumers caused by speculation would be minimised. It was decided to purchase the business of Picot Brothers, Limited, Wellington. '! The legal and financial advisers of the Government expressed some doubt 011 the question of whether this undertaking was authorised by the Primary Products Marketing Act, 1936, and it was decided to charge the capital expenditure and working expenses of the purchased business to unauthorised expenditure account. This course was agreed to by the Audit Office on the undertaking by the Prime Minister that the Government would promote any validating legislation which might be necessary."