TAXATION REVISION

Wanganui Chronicle, Volume 87, Issue 207, 2 September 1943, Page 3

TAXATION REVISION

MR. HOLLAND OUTLINES PROPOSALS (Special) Christchurch, Sept. 1. Several proposals for the revision of taxation were given in detail by the Leader of the National Party, Mr. S. G. Holland, in his address here last night. He said that taxation was inequitably applied. With the objective of restoring individual independence and reducing the need for State payments, the National Party proposed to introduce a sliding scale of wages tax according ’to the size of the family, so that no man’s income would fall below a specified minimum adequate to maintain a family of that size.

Age benefits under Social Security paid no tax, but thrifty people on lower incomes were very unjustly treated. Those people who had savecj public servants, superannuitants, and widows with legalies—could not get the age benefit, and in addition they were taxed for social and national security. In addition, income from small investments paid a .3 31-3 per cent, penalty income tax, and he honed to remove that some day. So as'to encourage thrift and reward self-reliance, the party proposed the following taxation relief for persons over sixty years of age. Income up to £3. no tax: uo to £4, lOd in the £; up to £5. Is 8d in the £; up to £6 and over 2s 6d in the £ as at present. A promise that hospital rating woqld be revised so as to remove present injustices was made by Mr. Holland. He said it was inequitable that a person might have a very large annual income and pay nothing by way of hospital rates, while another person who had even a small section of land found himself liable for the payment of hospital rates. This was quite unfair. The problem would be tackled in two stages. First, rating would revert, to what it was before the introduction of Social Security, and subsequent increases would be taken off the land; and, second, at a later stage he hoped that all hospital rating would be removed from the land, both town and country. Inadequate Exemptions. The existing income tax exemptions for families were inadequate. The present exemption of £5O tor a wife and each child would be extended to £75, and the exemption for children would continue beyond the age of 18 years, while they were learning and not earning. The injustice of the position by which a man earning £B, but receiving only £7 in his pay envelope, was taxed on the full amount of £B. would be removed as quickly as possible.

Many farmers, manufacturers, and others affected found that, because of their inability to secure labour and materials for maintenance purposes on their farms and in their factories in a normal way, their nominal profits on which they were taxed had increased, requiring them to pay taxation on a false basis. To correct this injustice, the National Party would permit taxpayers to establish maintenance reserves which "would be available tor doing maintenance work when labour and supplies become available. These maintenance reserves would be deductable from the taxpayer’s assessable income. In view of the present state of the War Damage Insurance Fund and of the vastly improved war situation,

said Mr. Holland, war damage insurance would be discontinued, as he considered the present fund was ample for the purpose. Servicemen returning to New Zealand and setting up home found that the furniture they required was subject to 20 per cent, sales tax. This would be rebated, said Mr. Holland, and with a view to effecting a substantial reduction in the cost of house-building in New Zealand the National Party would remove the sales tax on building materials for new homes. This would result in a saving of £lOO per house.