MORE TAXATION

New Zealand Herald, Volume LXXVI, Issue 23418, 7 August 1939, Page 5

MORE TAXATION

AUSTRALIAN BUDGET BIG INCREASES FORECAST £100,000,000 EXPENDITURE £from oun own corhkspondent] SYDNEY, July 29 Australia's first £100,000,000 Budget -will be introduced when the Federal Parliament resumes, probably at the end of August. Defence * expenditure alone in the 1939-40 financial year is expected to amount to £32,000,000 or £18,000,000 more than in the financial year ended June 30 last. The total Commonwealth revenue in 1938-39 was £93,000,000.

Federal Ministers will be asked to approve drastic increases in taxation, both direct and indirect, when tho Cabinet reassembles in Canberra next week, most of which will be devoted to the final framing of tho Budget. To meet the estimated expenditure of £;52,000,000 this year on defence, about £14,500,000 of that record amount must' be raised from revenue. Higher Sales Tax Expected

Recent estimates suggest that the taxation increases may range up to 20 per cent and may be so arranged that the incidence on higher incomes will be considerably greater than previously. The sales tax will almost certainly be increased by 1 per cent, and increases in excise duties on beer and spirits will provide another method by which tho/Government can increase revenue. Other sources of revenue have been investigated with the object of increasing what might be considered as minor imposts. In many cases, heavy increases in these sources would inflict sectional hardship, and, consequently, tho Government will probably decide to spread any increases on such groups. The Assistant Treasurer, Mr. Percy Spender, has been putting the firiish- ' iug touches to the Budget during the last few davs, and has completed a revision of the departmental estimates. He said that some substantial reductions had been made in these estimates. Importance- of Defence Defence was tho paramount consideration, and all other estimates had to be brought within tho limited re--sources available for general purposes. "There has been a thorough investigation of all departmental estimates to eliminate all unnecessary expenditure,'.' ho said. "As tho estimates are reduced, so the burden on the taxpayer is correspondingly lessened." The Prime Minister, Mr. R. G. Menzies, passed pro-Budget comment in his typically breezy and slightly cynical way. He caused amusement at tho annual dinner of the Sydney Chamber of Commerce by suggesting to tho chairman that the gathering should refrain from toasting tho Commonwealth Government until it perused the Budget, "If I ever have the pood fortune to come here again as Prime Minister and respond to the sumo toast," said Mr. Menzies, ."I daresay that you'will rise, to your feet, and, with a little break in tho metre, but still preserving the tune, sing 'For They are Jolly Good But Expensive Fellows.'" WELLINGTON STOCK EXCHANGE MR. G. T. GEORGE RETIRES At tho Conclusion of tho afternoon call on the Wellington Stock Exchange on Friday, a. presentation was made to tho retiring vice-chairman, Mr. G. T. Georgo, who has given up active business after a membership of 30 years. During that period, Mr. George served several different terms on the committee, and for the last three years as vice-chairman. Mr.' F. H. 11. Taylor was elected-vice-chairman, and Mr. Thomas Coiidliifo was elected a member of tho committee to fill the'vacancy caused by tho rotiremcnt of Mr. Georgo 1 . BRITISH TREASURY BILLS British Wireless LONDON, August -1 The total amount applied for this week in .tenders for £35,000,000 worth of Treasury bills was £60,900,000. The average rate per cent for bills at three months was 13s 7.90 d, against 14s 4.08 d a week ago.