VARYING. THE TAXES.

Taranaki Daily News, 21 August 1930, Page 10

VARYING. THE TAXES.

It is possible that there will be. no very strong objection to the alterations in the amusement tax proposals contained in the Finance Bill now before the House of Representatives. The Prime Minister first of all agreed -to abandon the suggested tax of Id on a ticket costing Is, and on Tuesday he announced his readiness to forego Lie tax of 2d on a ticket costing Is 6d. Since the increased cost of providing entertainment in recent years has necessitated the raising of charges . tor admission, so that the "nimble shilling can no longer be regarded as a standard minimum, there is something to be said in favour of the exemption of the ls-6d ticket from taxation. There are, no doubt, a good many people whose outlay on amusements only provides for periodical visits to the cheapest seats at the picture theatres, and the' addition of 2d to the cost of each ticket would perhaps keep some of them away. If the tax cau be done without it certainly should not be imposed, but Mr. Forbes in announcing the concession pointed out that it meant a loss of £35,000 or £40,000 to the Consolidated Fund. and. suggested that an addition of 1 per cent, to income tax would balance the accounts. It is to be hoped that he will find some other means of overcoming the loss of amusement tax, for already the burden of taxation on incomes is excessive, and yet the Prime Minister budgeted for an increase of nearly half a million from this source. Last year income tax took £3,533,764 out of the pockets of the people, this sum being greater by about £200,000 than the amount collected in the previous year. It cannot be suggested that increasing incomes justify the ever-grow-ing demand of the tax gatherer; on the contrary, the Dominion is passing through a period-of restricted earning power, and heavier income tax means less available funds in the hands of individuals and corporations. At a time when additional resources arc urgently needed in all kinds of. industry and commerce the State puts out a heavy hand to cripple those who otherwise would gladly assist the expansion of enterprise which could be made so great a factor in the restoration of prosperity. Surely Mr. Forbes, if he would, could find othei- means than a turn of the income tax screw to make up the small amounts that he will lose through foregoing some of his minor taxes. This is his opportunity to extend the practice of administrative economy, which was so unobtrusively represented in the Budget. And if he would pluck up courage and make a beginning by topping off a few small sums here and there he would probably.find the process to be very readily capable of considerable extension.