WAGES RESTORATION.

Star (Christchurch), Volume LXVI, Issue 20391, 23 August 1934, Page 9

WAGES RESTORATION.

A Forecast of Cheerful Budget to be Presented To-night.

NO ADDITIONAL TAXATION.

(“ Star ” Parliamentary Reporter.) WELLINGTON, August 23. THE RESTORATION of tlie 5 per cent cut to all public servants and members of the Legislature, a similar benefit to old age pensioners and an immediate reduction of twopence in the present shilling in the £ wages tax, with the prospect of a similar concession at a later date are the main features of to-night's Budget—the most cheerful which has been presented to Parliament for many years. There is an expectation that the restored «uts will be made retrospective from the commencement of this financial year, namely April 1 last.

Among the other proposals examined by Cabinet in formulating the Budget policy was one for a reduction in interest rates on all State loans—a line of action which would have involved acorresponding adjustment of the sales tax. by bringing under its operation a number of goods at present on the exemption list. However, this proposition was abandoned, and it is not now clear whether the Minister of Finance, for other reasons. may later have to resort to additional sales tax revenue. These features fully support the pre-'

vious forecasts that the Budget would be heartening to the whole community. With four months of the current financial year as an indication of the prospectve revenue, the Minister of Finance is fully justified in expecting revenue improvements in several notable respects. Recent company bal-ance-sheets and the remarkable improvement in the wage tax receipts point plainly to income tax receipts, being substantially in excess of last year’s realisations. Though the tax rates wll no tbe changed it can be confidently forecasted that no additiona taxation is being imposed.