POINTS FROM THE BUDGET.

Colonist, Volume LVIII, Issue 14483, 15 August 1917, Page 2

POINTS FROM THE BUDGET.

EXPLAINED BY Mf hWr, ■ ae*./ A few points from the -V-dget'wluch appeared doubtful were put by the Christehurch "Press" to Sir Joseoh Avard as foilows:—

(1) Whether the war loan is to be free of income-tax and of the war t.-:x" or free of income-tax only but sub to war tax. * J

(2) Whether the progressive land mx —ranging from l|d to 10* d—applied to mortgages, being a- levy on the unimproved value of mortgaged land. /3) Whether, for example, a company with large investments on mortgage— say £200,000—would have to pay 10-hd in the £ or^the unimproved value. _ (4) Whether the 5 per cent, exemption on the unimproved value of land used in producing income would cease when the income produced reached £900. This appeared to be a possible interpretation of the paragraphs in the Budget under the heading "Progressive Income Tax."

Sir Joseph Ward replied :— j vf(,l) War loan is exempt from all in-1 come tax. including war tax. j "(2) Progressive land tax will nnf j nnp.lv to mortgages, as-interest frnr,> I mortgages is assessable for inooir? o-trrA. I Progressive lard tn~ will be levied oni unimproved value of land .only. i "C 3) A company holding £200,0001 mortaage-s will not'"be charged land ta~i on thr. mortgagos, but ifc will be liable j to^incoire-tr.x on tha interest. j ''(4) The 5 ncr cent deduction is from ! uiTimproved value of land which i,s used ! for producing income: and is distinct • fi-(.un the £300 exemption, which latter; disappears at £900." I