REDUCED TAXATION

Otago Daily Times, Issue 26847, 11 August 1948, Page 5

REDUCED TAXATION

SOUTH AFRICA’S POLICY RELIEF FOR LOWER INCOME GROUPS N.Z.P.A.—Reuter—Copyright CAPETOWN, Aug. 9. ‘Recent political changes in the Union seem to have caused a good deal of quite unjustifiable uneasiness,” said the Finance Minister, Mr N. C. Havenga, in introducing the Budget in Parliament. “I will continue to pursue policies of sound finance and economic development. It will remain my endeavour to maintain the strength and credit of:our country and preserve an equitable balance among the various interests that go to make up the economic life of our people.” Both Britain ana South Africa, he said, desired that the Union should remain within the sterling area. Mr Havenga announced a surplus of £8.900,000. Mr Havenga said he could not givj an assurance that South Africa’s freedom from import restrictions would last indefinitely. South Africa must find dollars to pay for heavy United States imports or do without. The latter alternative would inevitably mean import control, and would affect trade with other countries with which the Union had an unfavourable balance of trade.

Britain was still the source of a heavy volume of investment, and neither Britain . nor South Africa wanted the flow of genuine capital limited. This did not apply to “ hot or funk money,” which South Africa had already taken steps to curtail. Mr Havenga made the following points on Budget policy:— 1. The total estimated expenditure was £ 125,527,000. 2. Pensioners and civil servants would receive cost-of-living allowances. 3. The 20 per cent, surcharge on normal income tax and 25 per cent, on supertax would be repealed. 4. Those increased rebates will give relief at the lower end of the scale. 5. The tax of £3 on unmarried taxpayer world be abolished.

6. To secure larger revenue from share transactions the present graduated duty would be replaced by a marketable securities tax of § per cent, of the selling price of shares. 7 Tax changes would be effected safeguarding the interests of minority shareholders in private companies.