BUSINESSMEN’S VIEW

Wanganui Chronicle, Volume 79, Issue 186, 7 August 1936, Page 8

BUSINESSMEN’S VIEW

ALARMED AT TAXATION EFFECT ON COMPANIES GRADUATED LAND TAX [ Per Prefs Association. ] WELLINGTON. Aug. 6. The Association of the .Chambers ol Commerce in a statement on the Budget. says: “The association views with the greatest alarm the increased anc 13 staggering taxation. The proposer ' taxation is, both total and in amount ’ per head of the population, greatly ir excess of the taxation during any previous year, the war years included The Government claims to be follow- ' ing the footsteps of Seddon, but on a per capita basis the position is that ’ the citizen to-day will be called upon ' to pay in taxation nearly five tim o< ? the amount he was called upon to pay ' during any year of the Seddon Government. The income tax rates pro- ’ posed will seriously hamper, and may indeed cripple, industrial and com- ’ mercial activity and expansion. I The. association deplores the fact that the Government will not , only adhere to the present ine- ? quitable system of company taxa- - tion, but also proposes to increase the rates of company income tax. - The Government seems blind to the fact that the income tax as 1 proposed to companies is a tax on • paper profits, not on dividends ' paid. The tax takes no account of the fact that profits may not be distributed, but may be required in business.” i ) Among other matters raised, the I’ statement says, in connection with the comparison made with England, that - if the unemployment tax was taken into account the result would show J clearly that New Zealand taxation is • in excess of taxation in England. “The Government’s proposals j • as to land tax seem to have no re- . j gard to the distinction between | rural and urban land. Of the lat- ' ter lands it cannot be said, as the j Minister implies, that they are . j held in many cases for specuia- | tive profits rather than produc--1 ; tion. All this land is put to full . | commercial use. To impose upon | such companies the burden of the - ; graduated land tax, in addition to j increased income tax, will seri--1 ously handicap present business 5 and stifle expansion an! exten- - j sion. In some cases, it may be ! that the land tax will be indi- - i rec.tly passed on to the. general -1 public and thus swell the rising ! tide of the cost of living. In other • | eases, it will turn reasonable com1 I mercial profits into losses.”