STAMP DUTIES ACT.

Otago Witness, Issue 3111, 29 October 1913, Page 7

STAMP DUTIES ACT.

DUTY ON EXCHANGE LANDS. (From Our Own Correspondent.) WELLINGTON. October 20. The Stamp Duty Amendment Bill was introduced by the Government this evening. The Hon. A. L. Herdman explained that the Bill contained only one important proposal—that transactions in the nature of exchange of land should bo liable to stain)) duty. At present stamp duty was payable only on the difference in the value between the properties exchanged. r ihe proposal was that stamp duty should be levied upon the total value of both properties. Mr Ell asked whether the Minister had considered the question of imposing a lower stamp duly qn transfers of houses or improvements on lands than on transfer of land. Whilst houses depreciated in value land usually appreciated to a great extent, and he thought that a. higher tax should be placed on these profits than on the transfer of house property. Mr M'Callum advocated that the law should bo altered so as to ensure that in agreements for sale stamp duty should be paid, also that the duty should bo charged in coses in which land was held by a bank. He also thought that the stamp duty should bo a graduated one. Mr Herdman said that it was not considered desirable by the Government to render agreements for sale liable to stamp duty in the same way as actual transfers were liable. It had boon the custom for many years to begin negotiations for sales bymeans of simple agreements. To render these liable to stamp duty would have the effect of disturbing ordinary commercial transactions to a great extent, and there was no knowing where the matter would end. As to Mr Ell’s suggestion to make a differentiation between land and improvements that was revolutionary and impracticable.

Mr M'Callum; It rs done in the case cf the land tax. Mr Herdman: That is a very different matter. Hundreds of transactions are going through the stamp office every week, and the task of differentiation as suggested would bo a very difficult matter indeed. The Government could not sco its way this session at anyrate to adopt the suggestion.