YIELD FROM TAXES

Wairarapa Times-Age, 27 September 1939, Page 5

YIELD FROM TAXES

> The tax increases, are estimated to produce for the remainder of this financial year £2,408,000 of the total of £9,750,000 required. The unexpended portion of the £3,200,000 already voted for defence will also be paid into the War Expenses Account, which will handle all war expenditure, and, in addition, money in the Public Works Account which would have been applied to defence preparation will be paid into the War Expenses Account. It is estimated that there will be a difference to be made up amounting to more than £4,000,000. For the full year, the additions are expected to produce £3,726,000. The following table sets out the estimated returns from the additional taxes for the remainder of this financial year, and for a full year: —

Totals 2,408,000 3,726.000 Legislation dealing with the new rates of taxation, establishing the War Expenses Account, and confirming the resolutions fixing the increased duties on tobacco, spirits and beer, and the tax on gold, was introduced and read a first time. USE OF RESERVE BANK The Minister said that amounts already voted for defence totalled £3,200,000, and the new taxation would bring £2,408,000, leaving a balance of £4,142,000 to be found. It was proposed to see if some could be raised by loan, and in addition, where it was necessary, all the money required for war purposes would be obtained from the Reserve Bank. There would be an amendment to the Reserve Bank Act later on to enable that to be done, as the Dominion could not afford to be short of money at any time during the war.

Mr Dickie (Opposition, Patea): “That is the worst tax of all.” Mr Nash: “Normally we can only borrow what is saved, but we cannot afford not to go on with the war because the money necessary has not been saved. We have to provide credit and use all our available resources to that end.” BORROWING IN BRITAIN “We have not decided what we will need by way of loan,” the Minister said. “'There is another provision in the War Expenses Bill, which will be

introduced later, for money required overseas. We take power to borrow from the United Kingdom Government without the usual security any money needed for any of our men overseas. The items I have outlined — particularly the £9,750,000 —covert expenditure in New Zealand only, and we have made no estimate of what it may cost if men have to go overseas. These are payments for equipment, the building of camps, the provision of uniforms, and the establishment and equipping of five air force training grounds so that we can give, our people the maximum of security.

“I think it may cost us £20,000,000 or £30,000,000 next year if the present circumstances continue,” Mr Nash added. “I am sorry we have to talk of long periods, but whatever it costs we have to find it and go right on with it to the end.”

Remainder of year. £ Full year. £ Death duties .. .. 175,000 700,000 Income tax .. .. 1,440,000 1.440,000 Postage 250,000 500 000 Beer Duty 100,000 200.000 Tobacco duty .. .. 273,000 546,000 Gold duty 110,000 220,000 Wine and spirit duty 60,000 120,000