FEDERAL DEFICIT

Taranaki Daily News, 10 July 1930, Page 13

FEDERAL DEFICIT

TOTAL NOW £6,500,000

£14,000,000 LESS REVENUE

NEW AND INCREASED TAXES

VENDORS TO PAY £5,000,000

POSTAGE CHARGES BIGGER

By Telegraph—Tress Assn. —Copyright. Rec. 9.2 Q p.m. •' Canberra, July 9. Delivering his Budget speech to-day, Mr. J. H. Scullin, Prime Minister and-Treasurer, reviewed the severe economic disturbance prevailing in nearly all countries and accompanied by a disastrous , collapse of com-

modity values. He forecast the Government would be faced with a shortage of revenue for the present year of £14,000,000. He estimated that Customs revenue would drop by £7,750,000 to £34,000,000. The , accumulated deficit had grown to £6,457,- - 882.

Mr. Scullin announced that towards making good the shortage of Customs and excise revenue the Government intended this year to impose new revenue duties likely to yield £5,700,000 and to obtain £5,000,000 by means of a sake tax of two and a-half pei’ cent. This tax would not apply to primary products, milk, butter and farm produce, nor to farm goods for export from Australia, but would apply to all imported goods for consumption in Australia or other goods manufactured in Australia which were not specified as exempt. This tax was similar to that in Canada. -Mr. 'Scullin anticipated from income tax this year £10,000,000, £850,000 of which was to come from increases and £150,000 from amendments to the Income Tax Act. The proposed increases were: Companies were to pay an increase of 11.1 per cent., the extra bringing the rate up to 16d per £1; individuals were to pay an increase of :.i ■> 15 per cent, on income which exceeded £5OO, while income from personal exertion ; ; '.. ; above £5OO was subjected to an extra 10 . •..per cent. J. Mr. Scullin said he expected £1,500,000 ii; towards the revenue from liquidated ex- >,... enemy properties. It was intended, also to increase the postcage, charges, The letter rate in future would be 2d per ounce within the Commonwealth arid British Empire. The present charge was lid. This would bring in an additional .£1,000,000 revenue. Although the additional taxation and charges involved £12,500,000, Mr. Scullin added, the great proportion represented imposts to replace, not to supplement, the taxation of previous years. Actually the per capita taxation was less than in 1927. The sum Mr. Scullin expected from the sales tax amounted to over £5,000,000. Vendors were fo render monthly accounts enclosing remittances upon taxable sales. The. proposed new Customs and primage duties would cover the following: Petrol 3d per gallon, tobacco 6d per lb, cigarettes Is and cigars 2s per pound, films Id per foot, newsprint £1 a ton, radio valves 10 per cent. Excise increases would be: Beer 2d a gallon, petrol 3d a gallon, cigarettes 3d a pound. Reviewing the financial .results of 192930, Mr.' Scullin said the Government had prepared a Budget for a revenue of £64,589,000. The actual revenue showed a shrinkage of £1,542,697. He detailed the manner in which considerable economies had been and were .being, made. lie said uo further drift of Commonwealth finances could bo permitted. Mr. Scullin alluded to the loan position. He said Australian Governments of the past three years had floated overseas loans aggregating £125,000,000. Notes in circulation and' gold reserves were respectively £44,914,326 and £19,931,102.