TWO TAXATION BILLS READ FIRST TIME

Wanganui Chronicle, 1 September 1950, Page 6

TWO TAXATION BILLS READ FIRST TIME

PARLIAMENT BLDGS., Last Night (P.A.). —Rates of land tax and income tax for the present year are lixed by the Land and Income Tax (Annual) Bill which was introduced in the House of Representatives today. They are the same as those for last year—in the case of income tax the basic rates plus 15 per cent., subI ject to a rebate of £10 —but the amount of tax will be reduced in some cases by the provisions of the Land and Income Tax Amendment Bill, which was also introduced. The Land and Income Tax Amendment Bill gives legislative effect to two of the Budget proposals—abolition of 33 1-3 per cent, additional income tax imposed on unearned income and the raising of a special exemption from land tax to an unimproved value of £lOOO, instead of £5OO. An explanation of the two Bills was given by the Minister in Charge of the Land and Income Tax Department, Mr. Bowden. He said that unearned income had nc/w disappeared from the schedule of taxation legislation. It was estimated that the lifting of the exemption for land tax purposes would absolve 25,000 taxpayers from the necessity of making returns. That would materially reduce the work of the Land and Income Tax Department. It was estimated the loss of revenue would be very little. Mr. Nash (Opp., Hutt): How much? Mr. Bowden said that was difficult to say, but he thought that at the outside it might be £.15,000. While there would be a loss of land tax revenue, it had to be remembered land tax was a deductible item for income tax. There would, therefore, be recoveries by way of income tax and social security tax. The Bills were read a first time.