WAGES TAX REDUCED.

Pahiatua Herald, Volume XLII, Issue 12732, 24 August 1934, Page 5

WAGES TAX REDUCED.

SPECIAL EXEMPTIONS. One passage in the Budget report reads ; The Government desires to do as much as possible for the unfortunate members of the community, but cannot overlook the fact that many who are paying unemployment-taxation are not much better off than the unemployed themselves, in addition to which a reduction In taxation will tend to promote more regular employment ill trade and industry. It should be borne in mind that “lie Government's proposalu for capital expenditure on buildings will also provide for an expansion of employment. For the current year it is- estimated that on the present basis ot taxation the revenue of the fund would amount to £4 770,000. and, with the balance carried forward on Ist \ [ ri] last, the -• total amount available would be £5.390.000. As this is about £1,000.000 more than the expenditure for 1933-34, and the numbers of unemployed arc declining, it is proposed to exempt from the wages-tax the salary or wages received by any- person under twenty years of age. In addition, the -special exemption for women in respect of “other income” is to be raised from £2O to £SO, and eldeily people' and .also persons with physical or mental disabilities with incomes not exceeding £2 a week are to be given the right to declare their exemption from the emergency unemployment charge. These and some other adjustments' will be included in amending legislation to be introduced shortly. Stepshave already been taken to reduce the levy for relief workers to Is a quarter.

In addition, it, is proposed to reduce the rate of unemployment-taxa-tion from Is to lOd in the pound as from Ist October. These concessions and reductions will reduce the revenue by £500.000 for this financial year and by £1 000.000 in a. full year. Further than this it is not advisable to go at present, as the efforts of the Board t-o promote new industries and stimulate existing industries by such means as the buildino subsidy ir. order to increase normal productive full-time _ employment require greater expenditure than pure relief works or sustenance, although the rates for the latter have been increased. If, however, conditions continue to improve, it may he found possible to make a further reduction in the taxation next financial year.