FINANCE BILL PASSED

Taranaki Daily News, 21 August 1930, Page 13

FINANCE BILL PASSED

COMMITTEE ON PETROL TAX. By .Ttlegraph.—Press Association. Wellington, Last Night. Consideration of the Finance Bill in committee was concluded in the House of Representatives in the early hours of this morning. x . ■The Prime Minister intimated that a committee would be set up early next session to consider the apportionment of revenue from the petrol tax. It must remain undisturbed in the meantime, but he would .agree to a restoration of the 8 per cent, allocation to the cities aftei March 31 next. The clause was passed on a dviision by 45 votes to 27. The Prime Minister agreed to arrange for an amendment to be inserted when the Bill was before the Legislative Council, providing that the operation of the section relating to the Highways Act should be limited till August 31, 1931.

The remaining clauses were passed without amendment and. the Bill was read a third time and passed. The House rose at 3.35 a.m. till 2.30 p.m. to-day. When the House resumed to-night the Land and Income Tax Amendment Bill, the Land and Income Tax (annual) Bill and the amendments to the Finance Bill were introduced by Governor-General’s message and were referred to a committee of the whole House. The Prime Minister very briefly outlined the proposals of the measures, chief of which were the repeal of the super tax on land of an unimproved value of £14,500 and over, farmers holding land of the value of £7500 and over to become liable for income tax, : nd the provision for 5 per cent, exemption on the unimproved value of land and income tax.

Mr. Forbes explained that under the Land and Income Tax (annual) Bill the amount of income tax would be left as in the Budget—lo per cent. He had stated previously that he might have increased the amount because of the abolition of the twopenny tax on Is 6d amusement tickets, but after consulting the Treasury he had decided to take a sporting chance on the revenue. A clause was brought down by Gover-nor-General’s message carrying out the Prime Minister’s promise to revert to a system of paying 8 per cent, of the net petrol tax revenue to the larger towns on April 1, 1931, also his promise relating to payment of the main highways funds expiring on August 31 next t year. All three Bills were read a first time and the House adjourned at 10 p.m.