LOWER TAXES

Wanganui Chronicle, Volume 75, Issue 280, 26 November 1932, Page 3

LOWER TAXES

RELIEF IN AUSTRALIA REVENUE IS HEALTHY. SYDNEY’, November J 7. The reduction in taxation which has been announced by the Prime Minister was the most welcome news Australians have had since tho end of the Great War. They had become so accustomed to increases in the demands made upon them by tho many Govern ments that they had almost forgotten that there was a possibility that relief would come some day. During the election campaign the United Party gave a definite promise that it would reduce taxation at the first opportunity, but most people thought that the spokesmen wero electioneering, and nothing more. Ouce again Air. Lynns has proved as good as his word, and the reduced imposts will operate immediately. Of course there is some disappointment that there will be no relief as far as ordinary income tax is concerned. The reduction in the land tax will involve a total of £770,000, and perhaps it is well that the burdens of tho man rn the land should be eased. Costs of production in the primary industry arc still too high to give a fair return now that prices generally are so low. Incidentally big firms owning valuable blocks in the city will also benefit, but they have had such a difficult period of trading that few reasonable people will begrudge them this small measure of relief. The revenue from the sales tax, which was introduced by the Scullin Government —a Labour Government—has been considerably greater than was anticipated, and it would not bo surprising if this disappears altogether in the near future. By the latest decision it has been removed from most farm products and from books and periodicals. Roughly the concession exceeds £200,000. The total amount of the relief given under the new proposals is £1,400,000, and even so the probable surplus at. tho end of the financial year will be about £3,500,500. It is a remarkable fact that the Budget estimated a deficit of £12,469, but it is clear now that the whole of the estimates were on the conservative side and that the Treasurer did not foresee the large increase which has taken place in imports. The bulk of the additional revenue has come through the Customs Department, which has always boon the most prolific money-spinner for the Federal Government. Air. Lyons has warned the people not to become too enthusiastic over the tax reductions so far announced, as there is a possibility that taxes now lifted will have to be reimposed next year. Id taking up this attitude Air. Lyons has in mind the fact that next, year Australia may bo called upon to pay interest once again on the war debt owing to Britain. In view of Britain’s latest Note to the United States this does not seem to be very likely, and in the circumstances the public cau be excused for anticipating further taxation relief in tho near future. It is confidently believed that, the next reduction will come off the income tax and so relieve the burden on industry and on the individual. As a matter of fact, the Commonwealth should vacate altogether the field of direct taxation. Federal income tax was first imposed during the war as an emergency measure. It has been imposed ever since.