TAX REDUCTIONS

Otago Daily Times, Issue 22709, 23 October 1935, Page 10

TAX REDUCTIONS

SOME RELIEF EXPECTED ADJUSTMENT OF INCOME TAX BUOYANCY OF THE REVENUE (From Odb Parliamentary Reporter) WELLINGTON, October 22. A second Finance Bill which is to be introduced before the session closes will, it is understood, contaii provision for some further reduction of taxation for the current year. The extent or nature of the reductions is not yet known, but "i is believed that the Minister of Fiuaoet, Mr Coates, has been able considerably to review his earlier estimates in the tight of the encouraging returns from cu rent taxation. An indication of the improved conditions was given by the Government when it granted retrospective increases in the salaries of civil servants and in pension payments, and it is known that the prospects for the coming export season are hopeful enough to justify further benefits to the taxpayers. Before he presented his Budget Mr Coates was requested by business interests to review the sales tax with a view to its abolition or reduction, but it is considered unlikely even now that the Minister will be able to cut into such a lucrative form of revenue. Some adjustment of the income tax, particularly as it affects unearned income, may possibly be effected, but any disclosure of the Minister's present intentions cannot be expected until his Bill is before the House. OTHER IMPORTANT BILLS Apart from the Finance Bill, which must be passed before the House adjourns, the Government hopes to secure the passage of its Housing Bill, a small amendment to the existing banking legislation, and a Companies Amendment Bill. The Housing Bill, which is designed to set in train the Government's plans for municipal schemes!, will probably pass without a long discussion. Mr Coates hopes that the Companies Bill, which is not yet ready for presentation, will meet with the approval of all sections in the House. It will be based largely on the final report of the commission which investigater 1 company promotion methods in New Zealand, and it will tighten up still further the law relating to company promotion. Recent legislation has achieved a great deal in this direction, but it is considered by the Government that further legislation is necessary to close all doors to those who attempt to exploit investors of capital. The measure will be fairly comprehensive, and although it is not yet completely drafted Mr Coates hopes to secure its passage before tht end of the week.