FORECASTS BIG REVENUE DROP.

Star (Christchurch), Issue 19118, 10 July 1930, Page 1

FORECASTS BIG REVENUE DROP.

MR SCULLIN PREDICTS SHORTAGE OF £14,000,000.

(United Press Assn.—By Electric Telegraph—Copyright.) CANBERRA, July 0. Delivering his Budget speech in the House of Representatives, Mr J. H. Scull in, the Prime Minister and Treasurer, reviewed the severe economic disturbance that was pre vailing in nearly all countries, accompanied by a disastrous collapse of commodity values. He forecasted that 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 also £5,000,000 by means of a sales tax of 24 per cent. This tax would not apply to primary products, milk, butter and farm produce, or to farm goods for export from Australia, but would apply to all imported goods for con sumption in Australia, and to other goods manufactured in Australia which were net specified as exempt. Thu basis of this tax would be similar to that of Canada. Increased Income Tax. Income tax, he anticipated, would bring £10,000,000 this year, £850,000 o 1 which would come from increases, and £150,000 from amendments to the Income Tax Act. The proposed increases are: Companies to pay an increase of 11.1 per cent extra, bringing the rate up to 16d in the £; individuals to pay an increase of 15 per cent on incomes which exceed £SOO, while income from personal exertion above £SOO will be subjected to an extra 10 per cent. Mr Scullin said that he expected to obtain £1,500,000 towards the revenue from liquidated ex-enemy properties. It was intended also to increase postage charges. The letter rate, in future, would be 2d per ounce within the Commonwealth and the British Empire. The present charge is lid. This would bring in an additional £1,000,000 towards the revenue. New Customs Duties. Mr Scullin announced that proposed new Customs and primage duties would cover the following:—

Although the additional taxation and charges involved £12,500,000, he added, a great proportion represented imposts to replace, not to supplement, the taxation of previous years. Actually, the per capita taxation would be less than that of 1927. The Year’s Finance.

Reviewing the financial results of 1929-30, Mr Scullin said that the Government had Budgeted for a revenue of £64,589,000, but the actual revenue showed a shrinkage of £1,542,697. He detailed the manner in which considerable economies had been and were being made, and said that no further drift of the Commonwealth’s finances could be permitted. Alluding to the loan posit: i, he said that the various Australian Governments, during the past three yeers, had floated nineteen loans overseas, aggregating £125.000,000 The notes in circulation were £44,914,326, and the gold reserve was £19,931,102.

£ d. Petrol, per gallon 0 0 3 Tobacco, per lb 0 0 6 Cigarettes, per lb 0 1 0 Cigars per lb 0 2 0 Filins, per foot 0 0 1 Newsprint, per ton 1 0 0 Radio valves, 10 per cent . Excise Increases. £ d Beer, per gallon 0 0 2 Petrol, per gallon 0 0 3 Cigarettes, per lb 0 0 3