TAXATION IN NEW ZEALAND.

Taranaki Daily News, 16 July 1929, Page 8

TAXATION IN NEW ZEALAND.

Proof that the avoidance of further deficits in the national accounts should be brought about by economy rather than by increased taxation will be found in the figures supplied by the Government Statistician of the revenue obtained from taxation in the year ending last March. The total amount received was £17,833,135, a record except for the ‘boom” year of 1920-21, when both customs and income-tax returns were abnormally inflated. Of last year’s collections £1,234,577 represented special motor taxation, the proceeds of which arc transferred from the Treasury to provide finance for the Main Highways Board. Making allowance for this, the sum of £16,589,558 was collected last year as taxation for general purposes, which is £160,890 more than in the previous year. Customs and excise duties and income tax have been fully maintained, which seems to confirin the opinion expressed by commercial men that the “scientific adjustment” of both series of taxes would result in the long run in more being collected from the taxpayer. Land tax showed a further diminution, the amount received being the smallest since 1917. On the other hand, death duties reached a new record, and of the ten principal sources of revenue six produced more than in the year- 1927-28. In other words, in addition to the special taxation of motors the community was required to pay in general taxation as large a sum as in any year since the war. From the Prime Minister’s reply to a question regarding the rate of interest to he charged for State Advances, it-is fairly obvious that the era of cheap money has not yet been reached, and with a considerable amount of loan money falling due within a few months, which must be converted at a higher interest rate, standing charges seem unlikely to be reduced. There remains the ordinary expenses of administration, in which economy should be possible in order to make the national accounts balance. There can be little question but that heavy taxation has had its share in creating the depression that is not yet wholly overcome, and to add to it in order to avoid a deficit can scarcely be held to be the wisest or the only course available.