TAXATION REDUCTION

New Zealand Times, Volume LI, Issue 11960, 15 October 1924, Page 7

TAXATION REDUCTION

“ PASSING IT ON” REDUCED INTEREST RATES ON OVERDRAFTS. LIGHTENING THE BURDEN. In view of the reductions in taxation made during the present session, would the Prime Minister, as Minister for Finance, asked Mr P. A. de la Perrele (Awarua) in the House of Representatives yesterday afternoon, urge upon the banks and other lending institutions that a corresponding reduction be made in the rate of interest charged to clients, and would he also express the opinion that, merchants should pass on to their customers the benefits of the reductions? , “ALREADY DONE.” Mr Massey replied that what the bon. member suggested bad alreadv been done, to a certain extent at all events. When Parliament was considering the reduction of taxation last year a suggestion on such lines was made by him, and he had the best of reasons for beliving that a reduction had been made by the banks, in the interest charged on overdrafts. The over djaft rate used to be 7 per cent, and in the case of the Bank of New Zealand" there was an official document m his possession stating that that rate had been reduced to 6J per cent.: and that 71 per cent, of: the hank’s clients were only being charged 6f per oent. The Hon. J. A. Hanan (Invercargill): You refer to current accounts? REDUCTIONS ELSEWHERE. The Prime Minister: Yes. As to the other part of the question, that relating to merchants, he added that he thought that there were many cases in which the reductions had been passed on to customers. The Wellington Gas Company had intimated some time ago that, on account of the reductions n: taxation, it Ukis able to reduce the charge for gas, and the Chelsea Sugar Company had intimated to his colleague (the Minister for Customs) recently, that, as in all probability there would he a reduction of direct taxa-s 'tion this session, it would be able, to reduce the demand it was making fo ■■ a protective duty. He thought that such cases could .be multiplied. AU the greatest authorities .on taxation were of opinion that reductions in taxation, benefited everybody in tho community.