REDUCING TAXATION.

Taranaki Daily News, 29 January 1934, Page 6

REDUCING TAXATION.

The Prime Minister’s reply to an Otago deputation which sought the abolition or reduction of the tax upon gold was very definite.. It would not bring much comfort to the deputation, for Mr. Forbes said there was no possibility at present of reducing taxation or of taking any action that might reduce the public revenue, He went on to say, however, that next year, when the benefit of the improved prices obtainable for meat and wool had shown their effect, it might be possible to reduce taxation. With the Budget still unbalanced the Prime Minister's insistence upon non-interference with all sources of revenue can be. understood, and his ruling will be accepted the more cheerfully for his statement in regard to next financial year. It is quite certain that a reduction in taxation would do more than any other Government action to renew confidence in industrial and financial circles. With less taxation enterprise would be stimulated, “more employment offering, and the relief of the unemployed so much the less pressing a difficulty. For the Prime Minister to suggest that a reduction in taxation may be possible next, year is hopeful. This year the best that could be hoped for was that there should be no increase in taxation, but as revenue is keeping up there are grounds for the belief that the deficiency at the close of the financial year will be smaller than was budgeted for. Of course until the actual cost of the higher exchange rate is known, and the effect upon the last quarter’s revenue of the low prices ruling for dairy produce is ascertained it is impossible to forecast the position next March. On the whole, however, Mr. Forbes’ intimation was cheering.