WAR TAXATION.

Wanganui Herald, Volume L, Issue 14697, 31 August 1915, Page 6

WAR TAXATION.

FARMERS' WAR PROFITS TAXED. (Per United Press Association.) WELLINGTON, August 30. The proposed new taxes make a levy on the war profits on wool and meat, and a graduated land tax. A relereuce to that portion of the Budget (proposals which is intended as a lax on war profits, and the application cf the, income tax to income derived from land, was made by the Prime Minister in an interview this evening. “This tax, which will apply to profits made during the war period," said Mr Massey, “is not intended to affect small farmers, but it is intended to reach those men who have made .extra’ large profits owing to the increases in prices, particularly in regard to wocl and meat." It was pointed out to Mr Massey that it had been suggested that some allowance should be male m the ease of those who have made generous subscriptions to the patriotic funds. “I cannot express any opinion upon that point,” was the Prime Minister's reply. , As stated in the Budget, the Government' propose to increase the land tax by an addition of 50. per" cent, to the present rates of graduated tax on country lands - . T he details of this proposal will be set forth in an amendment of the- Land and Income Tax Assessment Act. There is no precise definition in the meantime of “country lands," but the Prime Minister, in reply to a question, last evening pointed out that country lauds are. classified as “rural lands" under the Land Act. The other classes of land mentioned' in tliLand Act are “town” and “suburban” lauds. The Bill, which has yet to be prepared, will, of course, make’it plain which lands are to be subjected to the increased tax, and which arc to be exempted. EXCURSION CHARGES—SUGGESTED SCALE. WELLINGTON, August 30. la r g’-d to the proposed increases in railway charges outlined in the Budget, the aggregate of which pill be about J036O,OO(), it is suggested that the holiday excursion rates which are now ordinary single j .umey fares for the return journey, may'be increased to one and a. third of th-> single fare.' The Prime Minister, 1. v.-e.ur. mates that- nothing has been yet (hv;...d, a; the matter will have to come before the Cabinet'before any definite proposal is adopted. One :actor of the increasing expenditure which has to be met by the increased charges is the rise in the price of material. The cost of canvas has increased ICO per cent., rails 12 per cent;, fastenings 9 per cent., and steamer freight on rails by 102 per cent. The increases will have to be gazetted before they become operative. From a revenue standpoint 'the Government is anxious (bat the revisions should come into force early, and it is understood that the necessary regulations will he gazetted as soon as possible;