SYSTEM OF TAXATION

Otago Daily Times, Issue 22835, 20 March 1936, Page 10

SYSTEM OF TAXATION

DEPUTATION TO MINISTERS LAND TAX OR SALES TAX? MR NASH NON-COMMITTAL (Per United Press Association) WELLINGTON, March 19. A flat tax on land and a mandatory system of rating on unimproved value were two matters urged upon the Prime Minister, Mr Savage, as essential to the welfare of the Dominion by a deputation of nearly 40 persons from the New Zealand Land Values League this morning. The deputation also asked that statistics showing the working of the land tax should be made public and that the provision in the Municipal Corporations Act by which the profits from local body trading departments can be applied to the reduction of rates should be repealed. The Prime/ Minister was attended by the Minister of Finance (Mr Nash), the Minister of Internal Affairs (Mr Parry), the Minister of Lands (Mr Langstone) and the Minister of Industries and Commerce (Mr Sullivan). Mr Savage gave a sympathetic reply and assured the members of the deputation that they could safely leave the matters concerned in the hands of the Government. The object of the Government was to see that its policy would not benefit land speculators alone. The day of the speculator had gone and the day of the producer and the person who gave service was here. Mr Nash promised that the necessary statistics would be made available to the public, and Mr Langstone emphasised that the Government aimed at a just system of taxation. Commenting on the sales tax, Mr Nash pointed out that before the Government could profitably throw off one form of taxation it would have to see that the revenue necessary to run the country was available from other sources. Regarding the land tax in general, he said he would be going into every avenue from which money could be legitimately obtained. He could not say until the matter had been considered what would be done with regard to land taxation. That avenue would, obviously, be explored as it was one that might lead to fruitful fields at a later date. In the course of his reply, Mr Savage remarked that there was much more to be considered besides the securing of revenue. Revenue was very handy for the Minister of Finance, but it was not the only consideration. What the Government was concerned about, and what the people wanted, was a more equitable distribution of production. The Government stood for industrial development, but under the present state of things there would be greater benefit to tho land speculator than anybody else. When they were talking to the factory proprietor about increasing wages and shortening hours they had to see to it that the benefit did not go to the landlord.

Mr Savage also said the land tax was certainly a more equitable form of raising revenue than the sales tax. The big man probably paid land tax —but not nearly enough—but the little man paid none at all.