LAND AND INCOME TAX.

Waikato Times, Volume 98, Issue 15314, 15 August 1923, Page 5

LAND AND INCOME TAX.

RELIEF FOR FARMERS,

FLAT RATE OF PENALTY.

BILL TO OPERATE AT ONCE,

By Telegraph.—Special to Times. WELLINGTON, Tuesday.

In moving Ihe second reading of the Land and Income Tax Amendment Bill, the Minister of Finance, Hon. W. F. Massey, said the chief purpose was to remove tiic income tax on agricultural lands and determine the status of hanks whose headquarters wore in New Zealand, and who were in worse position in the matter of adjusting income tax legislation than banking companies whose head offices were outside New Zealand. There are very few farmers, said Mr Massey, that keen books; they rely on their bank pas? book and cheque book as well as the account sales that agents give them once a month or once a quarter, and when it comes to making out income tax schedules they are hopelessly at sea, and use language more forcible than polite. Wo have arrived now at the stage when wo can relieve them of this burden. The remission will mean an average of about £200,000.

The Bill also proposed to go back to a flat rate of 5 per cent, penalty in case of overdue income tax returns as compared with the graduated scale up to 15 per cent, in force now, which gave trouble in collecting. The present Bill would come into force immediately the GovernorGeneral's assent was obtained, not April 1 next, as was announced when it was introduced. This was at the instance of the Public Accounts Committee.

Farmers' Undue Advantage. The Premier was immediately charged by Mr J. A. Hanan (Invorcargill) of unduly adding to the advantage the farmer already had over the city dweller in exemption from taxation. Mr Hanan firmly believed, and supported his assumption with statistics, that the bulk of taxation is already borne by the urban dwellers. His theory is that the farmer and landholder, whose properties were protected by New Zealand soldiers, should not secure remission from the taxation which was imposed to assist in paying off the war debt. Labour's Opposition. The Labour Leader (Mr 11. E. Holland), in affirming that his party would not in this or any other Bill support the remssion of taxation until the pre-war purchasing power of money was assured lo the worker, produced an amazing volume of statistics in support of his contention that the Bill would not help the small farmer, but the big landlord, to six of the largest of whom it would make a present of £3500 a year. i Much Good In the BUI. Liberal Leader Mr T. M. Wilford saw much good in the Bill, and supported the principle that land'should not be submitted to income tax. During the war, he said, this type of taxation had produced £8,000,000, but limes had now changed. A Thoughtful Speech.

A thoughtful spcecli was that of the Timaru Reform member, Mr F. J. Rolleston, who is a member of the Public Accounts Committee. It was time enough, he said, to reduce taxation when ttie war debts were paid. Why should not the farmer pay land and income lax? Not only the farmer, but also the big land owners would benefit from the Bill.

Mr Holland paid a high compliment to Mr Rollcston. Whether he agreed with him or not he always exhibited courtesy and consideration for his opponent,'which is a marked contrast to other members. Town v. Country.

There was a good deal of town versus country in the debate, and several Labour amendments are likely, and there is every indication of another morning sitting.