BURDEN OF TAXATION

Wanganui Chronicle, Volume 73, Issue 314, 11 July 1930, Page 7

BURDEN OF TAXATION

NEW FEDERAL PROPOSALS STAGGERING BLOW TO TRADE SLUMP ON STOCK EXCHANGE By Telegraph—Press Association—Copyright l Received July 10, 9 p-m. SYDNEY, July 9. The Government’s new taxation and revenue duties have dealt a staggering blow to trade and industry. Leaders of commerce all declare that the new imposts must be passed on, further increasing the cost of living and intensify ing unemployment. Shar e values slumped sharply on the stock exchange, sellers lowering their limits drastically in an endeavour to realise. Anxiety to sell appeared to be genuine. Buyers, however, wanted big concessions. For example brewery shares fell from six pence to Is 9d; trading and industrial shares receded most heavily and touched the lowest levels for many years. Bank of New South Wales fell 5s to £37 15s, Commercial Bank of Sydney 4s to £l9 15s. The market for giltedgeds was extremely quiet, sellers having to face small losses. Motion picture distributors declare that the taxation of their industry has reached breaking point. The extra penny a foot on film means an extra £2OOO per week or £112,000 a year. A leading accountant stated that the direct and indirect Federal taxation nor the current year amoutns to over £59,000,000.

Reports arriving from all the States contain most bitter protests against th c taxation proposals and the dire effects these are likely to have upon the trading communities. New Zealand Not Affected The Minister for Customs states that the new duties will not affect any goods produced or manufactured in New Zealand. Agitation has begun in Adelaide and Brisbans for a united businessmen’s organisation to frustrate the Federal Government’s attempt to enforce the taxation measures which, according to one manufacturer, are likely to put half the wholesalers in Australia out of business. The sharemarket in Melbourne also slumped sharply.

LOAN REQUIREMENTS. THIRTY MILLIONS WANTED. Received Julv 10, 10.40 p.m. CANBERRA, July 10. The Prime Minister announces that the Loan Council must secure overseas not less than £30,000,000 in the near future in order to clear up the. London position. Failure to make such a provision will lead to an embarrassing position. Further, it is not proposed to extinguish the accumulated deficit of £6,500,000 by taxation. It will be covered bv means of a loan appropriation of £7,000,000. A London message states that the Financial Times is greatly hopeful that nothing will occur in the industrial sphere to derange the revenue yield. An appreciation of the heavy burden of taxation will find a quick expression in a London loan necessary to stabilise the position. It may be regarded under the present condit.ons as not extravagant but necessary to give the Commonwealth a financial buttress for the essential fructification of its plans.

The News and Chronicle confines comment upon the value of protection, in the fact that Australia has been reduced to a desperate expedient such a sales tax aftei’ years of energetically protecting herself.