A SALES TAX

Waipukurau Press, Volume XXVIII, Issue 32, 30 January 1933, Page 5

A SALES TAX

TO FILL EXCHANGE GAP REGARDED AS VERY LIKELY Legislation to give full effect to the Government’s revised policy programme has not yet been framed, and probably not until later this week will members of the House of Representatives know anything further of Cabinet’s specific intentions. The Bill to indemnify the banks against losses arising out of the increase in the exchange rate is not expected to be put through until Wednesday night or even later, so that the other work will be held up until it is out of the way. Tn view of the manner in which the Prime Minister has arranged the business for the next few days, there is every possibility that nothing more will be heard of the no-confidence motion of which notice has been given by the Leader of the Opposition.

As announced by the Minister of Finance, Mr Coates, on Friday, it has been found necessary to augment revenue next year by imposing further taxation to the extent of £2,400,000. The possibility of a sales, or turnover tax being imposed still exists, and there is every reason to believe that this means of securing assistance for the Consolidated Fund will receive Cabinet’s approval. Although it might have been expected that the Government would not deal with taxation increases until next session, it has been decided to dispose of the question before Parliament rises, and appropriate legislation will he introduced 'within the next few weeks, partly because the next session will not he held until well after .Tunc, the normal time. As the sales tax will not yield all that will he required, there is every likelihood that further imposts will be placed upon incomes.

No mention of a rebate of county rates was made by the Alinistcr of Finance in his statement to the House on Friday, hut it is understood that this forms one of the principal measures of relief for the farming community proposed by Cabinet. Tt is pointed out, however, that the granting of a rebate cannot bo separated from the question of local body interest, charges. So far no finality has been reached by the Government concerning the proposed reductions of interest rates, and the announcement .concerning rating remissions for next year will not no made until the general question of interest has been settled.

It has been stated frequently during the past few months that the Government intends to make provision to enable children attaining the age of six to attend primary schools at the beginning of the term in which they reach that age. At present the minimum permissive entry ago is six, and a Bill may shortly be introduced to deal with this questi on.—Dominion.