LAND TAX PAYMENTS.

Star (Christchurch), Issue 16571, 2 November 1921, Page 4

LAND TAX PAYMENTS.

TEN PER CENT REBATE. [From Our Correspondent.] WELLINGTON, November 1What was described by the Prime Minister as one of the smallest oi Bills was introduced by Governor-General s Message to-day, but it contains the important principle of rebate on land tax for prompt payment. Mr Massey said there was only one operative clause, applying the rebate system, which had been so successful in the Advances to Settlers Department. Members all knew that producers were having a hard time. Few of them had made a profit last year; some had made serious losses, but land tax had to be paid all the same. The proposal in tli© Bill would assist them, and he did not think it would be a financial loss to tho country. Land tax was due on Monday, and the Bill provided that if . payment were made within the due date, November 28. 10 per cent rebate would be given on the tax. Those who paid afterwards would not get the rebate. Members would agree with him that under the* circumstances landowners were entitled to encouragement and assistance during the bad times they were experiencing. Mr I.ysnar: What is the position if they don’t pay. by November 28? Mr Massey : They don't get the rebate, and if the money is not paid by November 28 the penalty applies. Mr Wilford: It is a discount for cash. Mr Massey: Yes, that is the best way to put it. Axis wering other questions, Mr Massey said that where there was inaccuracy in assessment, which held up payment, say, till December 28, the taxpayer would still enjov the rebate. Mr Witty: Will it apply to income tax payers? Mr Massey: Oh. no. Income tax is not payable till February. By that time 1 shall have a better idea of the revenuef do not say [ am not going to do something for the income tax payer, but I cannot say yet wliat this will be. Further questions from a highly interested House elicited the opinion from the Prime Minister that last year’s land tax totalled £1,700,000, the total possible rebates equalled £170,000. He thought, in view of the present position tlie country was likely to gain more by thi 9 concession than it was likely to ose. As for those who had no money to pay the tax, even with the rebate, no legislation in the world could pro- ' lc * e them with money if they did not possess it, but the Bill would make it easier for the payers of land tax to nuance it if it became necessary to do so. Air Jvellett declared that nothing had been said which would indicate that the Government was making it easier or anyone, except those who had money to pay. J Mr E. Newman assured the Prime : 1 mister that the concession would be very much appreciated. There was a concession already in existence which enabled those who deferred payment months to do so on payment o* ' * per cent interest. This was an advantage, as many who borrowed money to pay could get it at a half per cent below that rate. Interest for six months was 10 per cent. The present concession would make it much easier to raise money to pay land tax, in regard to which there had been a good deal of anxiety j n the country. Mr Bartram considered it another instance of looking after the big men. It was a Government bid for quick cash. Mr M’Leod congratulated the Government on its proposals, which won id give great relief. Me wished to know what lvas being done with the war super-tax. They had hoped to see it disappear during the current year, but it remained at 33 1-3 per cent. This Bill would encourage financiers to find money to further assist the producers. Mr W. H. Field joined in the congratulations, but suggested that it was too sanguine to hope that the banks would help everybody. Where a man could not raise his tax he would lose the rebate and also become liable to penalty. It would be preferable to charge the current rate of interest on the outstanding amount. -Mr Morn said that the land tax was on last year’s assessment. Everyone knew that values had fallen enormously since. He would be glad to see timo for payment extended till January, when most of the producers would be able to pay the tax without borrowing. Mr Young referred to the position of men who could not pay. There was a hardship clause , which the Commissioner could utilise. If a man could borrow he would have a clear gain of 3 per cent. Mr Veitch suggested that it was important to examine whether the country’s finances could stand the proposed loss. Apparently tire Government was satisfied that it could dispense with this revenue, but it had announced that it must get more revenue. It looked as if the Government was relieving landowners to place the burden on Customs. There should be limitation of the concession to moderate-sized holdings. Nobody holding more than Bio,ooo to £15,000 worth of land should get the rebate. Mr Lysnar regarded the Bill as an honest attempt to alleviate hardships common to all, but suggested that tho super-tax in certain c-aaes should not be imposed. Mr Jones thought that the Bill would be, received by the farming community throughout the countrv with a great deal of satisfaction. He drew attention to the fact that valuations had not been made lately, and big landowners property was not worth tho Government valuation of to-da.v. Mr Newman emphasised that many small farmers had not got any money in yet from the season’s products, and they should be relieved from the penalty clauses. Mr Massey, in reply, said he felt sure that the Bill would be as sympathetically received by people throughout the country as it had been in the House. People in the large centres, as well as the country, would appreciate it, as it had been brought home to everyone that the stabilitv of the country depended upon the producer. He would be glad to take into consideration the suggestions made but he reminded the House that he was responsible for the finances. He would have been glad to do away with the supertax, as had been suggested, but that was not possible. Moreover, as people would be paying their taxation, it was necessary to act quicklv. One point that had no.t been mentioned was the increase in land tax, which had risen from £600,000 before the war to £1,700,000 at present. Mr Witty : Valuations have increased. Mr Massey: Yes ; but the land tax has been increased very seriously. Replying to criticism that the Bill was specially to benefit the largo land- ! owner, ho characterised it as absolute , nonsense. No one disliked class legis- , lation more than he did, and in this | case it was not possible to discriminate, j He reminded members that last year legislation had been enacted which increased land tax, with the object of bursting up large estates. The increase was very serious, and the big owner

was not going to benefit to any great extent by this concession. Mr Veitch retorted that there had been extensive land aggregation, and aggregations should not be relieved by this legislation. should advantage be taken of the economic position to compel them to break up their tatesThe Hon W. Nosworthy assured the House that the Government had no sympathy for the land aggregator, and emphasised that direct taxation was paid by one-third of the people of the country, and they were entitled to some relief. The Bill was read a first time.