REDUCTION OF TAXATION

Waikato Times, Volume 98, Issue 16095, 19 September 1924, Page 2

REDUCTION OF TAXATION

AMENDING THE BILL. FIVE PER CENT. OFF LAND TAX. COMMITTEE REPORT DISCUSSED. Th« Public Accounts Committea has amended the Land and Income Tax (Annual) Bill by altering a 10 per cent, reduction to a 5 per cent, reduction In the, , case of land tax. The reduction of 13 1-3. per cent, in income tax is not disturbed. By Telegraph—Special, to Times. WELLINGTON, Thursday. In the House of Representatives this afternoon the chairman of the Public Accounts Committee (Mr J. •A. Nash) presented the report of the committee in regard to. the Bill for the reduction of land and income tax, •which recommended that the Bill be allowed to pass with the 'amendment indicated by the committee—that the reduction on the land tax be 5 per 'cent., instead of 10 per cent., as provided In the Bill.: , The Leader of the Opposition (Mr T. M, Wilford) asked the chairman .whether, the committee! had before 'them;, .the information lie. had asked the Prime Minister to XUroish .wittj regard to the amount lost to the Treasury in land arid income tax ceivahle from incomes over £IO,OOO a year... '■' ■ .'...,:.. .? 1 Mr Nash: There is only, one amendment to the,. Bill—the reduction from 10 per cent, to 5 per cent, iff; the case of the land lax. Mr Wilford:, That-is not my point The eommittee evidently did hot have the benefit of the information before them. '".'::' ''■,-'•'*"'.■'"/ '■- ' ' •'■ '.

The Prime Min Mer, remarked that seme of the details asked for would take a long time to secure, and could not be ready before the Bill was proceeded with. He would endeavour to have some of the information for the Leader of the Opposition before the Bill was dealt with in committee. "The points raised are harmless and easy to answer," remarked Mr Massey drily. Dealing with the' committee's recommendation regarding the land tax Mr Massey' said several members of the committee were of the o-p,inion that the Government should do more in knocking out -. «r reducing/the land tax on mortgages. That had been agreed to by the committee and himself. He felt that it would be unwise to go further "^with'the reduction. As far as the amount was concerned, the reduction of the land tax by 5 per cent, would aggregate £65,000. The reduction proposed in land tax in. the Bill was £135,000. Members -would recollect that the Government ' had. already made a reduction to the smallest' of the settlers, and theywere compelled to borrow money to enable them to ■carry on their business. They- re-', duced the land tax on mortgages up to £4OOO, and then it went off at a /sliding scale up to £BOOO. The Leader of the Opposition: Will there be a larger margin? Mr Massey: We go to £4OOO, up to £IO,OOO, and then to £15,000; It is a very considerable reduction and assistance to the man with a moderate farm and moderate capital.