PARLIAMENT

Otago Daily Times, Issue 23005, 7 October 1936, Page 10

PARLIAMENT

YESTERDAY'S PROCEEDINGS LEGISLATIVE COUNCIL (Per United Press Association) WELLINGTON, Oct. 6. The Legislative Council met at 2.30 p.m. The second reading of the Land and Income Tax Amendment Bill was moved by the Leader of the Council, Mr M. Fagan, who said the Bill was necessary to allow the Government to put the budgetary proposals into operation. The pension increases would cost £ 1,800,000. It was proposed to raise £1,000,000 from income tax and £BOO,OOO by the graduated land tax. Mr Vincent Ward said he regretted that taxation had been increased. Mr M. Connelly sugested that the Government might consider taxing the reserves of companies in excess of the paid-up capital. There was need for an inquiry into the huge reserves being created. Mr E. R. Davis said he regretted the increased taxation and was of the opinion that business initiative would be hindered. He quoted one company which, as a result of the legislation, would have 9s 5d in the £1 to divide among the shareholders, compared with 13s 7d last year. Mr Rangi Mawhete said the graduated land tax might cause hardship among the Maoris. Mr J. Alexander said that the people would not oppose taxation if they knew it was for defence. He hoped that defence taxation would be increased. Mr C. J. Carrington said that increased taxation must mean high prices through increased costs of production. Mr W. H. M'lntyre made a plea for inserting a.hardship clause in the Bill. Mr H. A. Russell opposed the graduated land tax. Replying, Mr Fagan said that company taxation was greater in 1921 than it was under the Bill. The graduated land tax placed no hardship on anyone who owned land in 1931. The Bill was read a second time on the voices. The Land and Income Tax (Annual) Bill was also read a second time on the voices. Both Bills were put through all their stages and passed, and the Council adjourned, at 4.30 p.m. till Thursday.