Shilling Levy On Wages

Southland Times, Issue 24164, 28 June 1940, Page 4

Shilling Levy On Wages

INTEREST-FREE LOANS

Taxation increases to provide the greater part, if not the whole, of £17,750,000 required for war expenses within New Zealand for the year to March 31, 1941, are announced in the Dominion’s first war Budget, which was presented in the House of Representatives last evening by the Minister of Finance (the Hon. W. Nash). It is proposed to find the money from the following sources:—

A national security tax of 1/- in the £1 on all income, calculated on the same basis as the Social Security tax. The doubling of the sales tax, making it 10 per cent. The new rate takes effect from today.

Increases in income taxation in the case both of individuals and companies.

Higher death and gift duties.

Provision is made for compulsory loans, interest-free for a period of three years or until 12 months after the war and then for 10 years at a rate of interest not exceeding 2| per cent. A national savings scheme for the benefit of small investors is also proposed.

All excess profits during the war are to be transferred to

the Government.

The total war expenditure, at home and abroad, will be £37,750,000. Including the ordinary Budget, public works and Social Security expenditure the Government will in the current year raise and spend about £100,000,000.