WAR FINANCE

Wairarapa Times-Age, 27 September 1939, Page 5

WAR FINANCE

OVER NINE MILLIONS NEEDED THIS YEAR Announcement of Additional Taxation and Borrowing HEAVIER CALLS ON INCOMES, BEER, SPIRITS, TOBACCO AND POSTAGE DEATH AND GOLD DUTIES RAISED (By Telegraph. —Press Association.) WELLINGTON, This Day. Increases in income tax, death duties, taxes on beer, wine, spirits and tobacco, a surcharge of Id on every letter, and an increase in the export tax on gold were announced by the Minister of Finance, Mr Nash, in the House of Representatives last night, as part of the measures to be taken by the Government to raise the £9,750,000 estimated to be required Io finance war activities for the remainder ot this financial year. Phe difference between the total so raised, added to the money already voted for defence and the total required, is to be made up by‘the use of Reserve Bank credit., and by borrowing. This total applies to expenditure in New Zealand only. Mr Nash estimated that the outlay in the war next year might be from £20,000,000 to £30,000,000. The increases in taxes are: Income tax, 15 per cent; death duties, 33 1-3 per cent; beer, 3d a gallon, making the amount 2s a gallon; wines and spirits, 15 per cent; tobacco, 25 per cent; goldfa tax of 75 per cent of the difference between the price at Nugiist 24 and the price on the date of the sale of the gold. A surcharge of a,penny is to be placed on every letter from October 1. Income tax applies to the amounts payable on income earned in the year to March 31, 1939, on which tax is at present payable.