REMISSIONS OF TAXATION.

Otago Daily Times, Issue 19269, 5 September 1924, Page 6

REMISSIONS OF TAXATION.

The Minister of Finance is now implementing the undertaking that was given in the Budget to propose reductions of taxation to an extent which ho then indicated as likely to represent the yielding of a million of revenue. There is no surprise in the nature of the form which the reduction of taxation is to take. It has been generally understood that remissions of taxation on land and incomes would be proposed and that they would bo accompanied by a reduction of the duty on tobacco. Proposals to this effect are now to be submitted to Parliament, ■ with the addition that the amusement tax is to be reduced. The concession in land tax is estimated at £135,000 and that in income tax at £583,000; while the reduction in the duty on tobacco is expected to work out at a sacrifice by the State of £IOO,OOO and that in the amusement tax to be equal to £45,000. These figures total £863,000, but necessarily they are approximate only. The collections of land tax last year amounted to £1,426,462, and the income

tax yielded £3,781,532. It is uot clear on the surface, how Mr Massey arrives at his estimates of the relief that will be afforded to taxpayers. That is, however, not of .moment. It is a satisfactory circumstance that the finances of the country admit of the proposals for a reduction of taxation, although, of course, there will be a difference of opinion as to whether relief is being accorded in precisely the best way. The leader of the Labour Party has taken the earliest opportunity, for example, of expressing the view that tho reductions will result largely in benefit to a particular class. That is what he is expected to say, but his fulfilment of expectations respecting, the opinion he expresses does not alter the fact that just as increases in direct taxation make themselves felt right down to the humblest class in the community so also are reductions of direct taxation farreaching in their effect.