INCOME TAX RELIEF

Otago Daily Times, Issue 26233, 17 August 1946, Page 8

INCOME TAX RELIEF

REDUCTION IN SURCHARGE MEANING TO TAXPAYER “ Income tax bears directly on the income of the people," the Minister of Finance, Mr Nash, said in presenting his Financial Statement in the House of Representatives, " and it is accordingly proposed, in respect of tax payable this financial year, to reduce the war surcharge from 33 1-3 per cent, to 15 per cent. This concession will absorb e.n estimated amount of £4,750,000.” The effect of this reduction in tne war surcharge on individual taxpayers in receipt of “middle" incomes is illustrated by the following comparison between the tax payable under the 33 1-3 per cent, surcharge and under the 15 per cent, surcharge which the Minister has fixed for the financial year:—

These figures include the personal and family allowances, but no deductions for insurance have been made.

Married Man, No Children Tax under 33 1-3 per cent. Income. surcharge. £ £ s. a. 400 16 13 4 500 35 0 0 600 55 0 0 Tax under 15 per cent, surcharge. £ s. d. 14 7 6 30 3 9 47 8 9 Married Man, One Child 400 868 500 25 10 8 600 45 0 0 7 3 9 22 5 8 38 16 3 Married Man, Two Children 400 Nil 500 16 13 4 600 35 0 0 Nil 14 7 6 30 3 9 Married Man, Three Children 400 Nil 500 868 600 25 16 8 Nil 7 3 9 22 5 8