Minister Explains Taxation Increases.

Stratford Evening Post, Issue 4, 25 July 1930, Page 2

Minister Explains Taxation Increases.

SHORTAGE OF THREE MILLIONS

To sum up the position says the statement, the Government was called upon to deal with, the anticipated principal variations from last year’s revenue and expenditure, if operations had been carried out in the ordinary way on the same basis, are as follows; — Decreases in revenue— £ Interest on .railway capital 1,239,000 Customs 1,1/50,01)0 Land and income tax 000,000 Items other than taxation 150,000 £2.830,000 Increases m expenditure — Debt charges* 315,000 Pensions and other fixed items 100,000 415,000 3,246,000 Less amount of last year’is surplus’! 150000 Prospective Budget shortage for 1030-31 3,095,000, I may mention that the amount of last year’s surplus has been deducted not because it can he brought into this year’s Budget, but because comparisons have been made with the revenue and expenditure for last year which resulted in a surplus of approximately £150.000. An estimated Budget shortage of over £3,000,000, quite apart from any increase under departmental votes —that is what the Government, this House, and the country generally have to face. Still, given the co-operation and support of honourable members and the people, the Government is satisfied that the position can he met and the Budget balanced, as, of course, it must be, without imposing undue hardship cn any section of the community, for there“is no doubt that the general financial position of the Dominion as a whole is quite sound. LAND SETTLEMENT. 1mi)o it 'I. * rvr successful land .settlement fully realised by the Government. All idle Crown lands suitable for ■farming are being made productive as soon us possible. During seventeen months ended April 30 last 545.100 acres of all classes ot rui;al and suburban Crown 'Sands wore selected mtidfcr various tenures, the number of subdivisions hems/ 2-519. Anticipated that some lUJ. additional farming sections will bo offered for selection by July 31. Development of Satire lands also vigorously pursued, intensive work; at present being earnest on, under fourteen separate development schemes, while preliminary operations being undertaken on. eleven other schemes, involving a total area ol 54.000 acres.

Thirty properties purchased fur land settlement purposes since the United Government came into ollice, comprising an area of 55,592 ’ acres, involving total purchase price of £525, 000 and providing a total of 119 subdivisions. LINE IVIPLOYIM ENT RELIEF. Additional employment provided on Government works. Total expenditure by State lor last year was £!.,- 415,592. At March 3.1, 1930, 10,197! men employer! on G oven uncut works. Subsidy payable to local authorities c.n labour costs of relief works undertaken in urban and suburban district" increased- from £1 for £i to £2 for £l.

TRADING DEPARTMENTS. With exception of railways, all trading departments 'earned profits for the year. RAILWAYS. Gross revenue for year, £8,288,110. I and working expenses £7,358,859. Total net loss for year, £1,211,209, due basically In competition of molar transport. Advance of £150,U0() made from Consolidated Fund to enable expenditure to he met. ■Subsidy nu branch linos and isolated sections discontinued! as from, April 1, 1929. Expenditure being drastically overhauled and nnreiminerativo services curtailed or elimwifito'd.

POSITION TO EE FACED SUMMARY OF BUDGET AV Itl,]j lA(rT(CsT’liis Hay. The financial statement was presented in the House of Represent tit ives last night by the Prime Minister, Mon. G. T\ r . Forbes. This contains a statement of the operaterations for tile year ended■ .March 31 last and the proposals of the Government f ord the coming* year.

HIGH WAYS. 1 otiil expenditure ciii roads and' highways now- approximately £3,600,000 per annum. Wasteful duplication of transport system lias been facilitated. by development of highways and roads. 1' malices ul Mam Highways Account being adjusted. Petrol tax to he increased from 4d to 7d per gallon to provide necessary additional funds. TAXATION. .Budget for ensuing year cannot wholly be balanced by economy in administration, and additional taxation is unavoidable. barge falling oil' iu Customs and land and income tax anticipated owing to trade conditions. Total shortage of over £3,000,000 required to be met. Shortage to be made good by decreases in expenditure amounting to £1,684,000 and the balance from additional taxation. Proposals. Customs) duties increased to provide approximately half of £1,060,000 required, mainly in respect of goods of foreign origin. Duty on tobacco increased. Allowance previously made for underproof spirit abolished. Duty on imported timber increased. Additional duty on cinematograph sound films. Jaurdi and Income Tax.—Special land tax abandoned and all farmers owning or occupying land of an unimproved value of £7500 or over liable to assessment for income tax on farming as well as oilier income. Also, adjustments on account of allowances. Rebate of 5 per rent, of capital, value of property for income tax purpoises to be amended to 5 per cent, on unimproved value or taxable Tialance, with appropriate allowances for depreciation. Income tax raised by 10 per rent. Taxation of life insurance companies la be adjusted. Stamp duties. —Totalisator <Juty increased from '2\ per rent, to 5 percent. Death duties increased Try ]() per cent, on amount by which final balance exceeds £IOO,OOO. Amusement tax increased; also sundry other increases in stamp duties. ESTIMATES FOR 1930-31. Estimates rigorously reduced to myiium consistent with maintenance of existing services. Estimated Revenue. £ Customs 8,530,000 Beer Duty 015,000 film hire tax 30,000 Motor vehicles, duties, licenses etc 1.015,000 Stamp and death duties ... 3,780,000 band Tax 1,2-10,000 Income tax 3,960,000 Interest on public moneys 805,00(1 Interest on capital liability: Railways 1,380,000 Dust Office 510.000 Interest on Public Debt Redemption Fund i^'.ODO Other receipts 1,370,000

Total £‘25.120.000 ESTIMATED KESILTS. The position for the year estimated to he, ; itoveiuio, £25,120,000. Kxpenuiituie. —Permanent appropriations, £17,200,000 -annual votes,, £7,085,000; total, £21,871,000. Surplus.—£2-10,000. Tiie surplus has to provide for ,supplementary estimates and contingencies.