WAR FINANCE

Waikato Times, Volume 127, Issue 21167, 17 July 1940, Page 6

WAR FINANCE

BILLS INTRODUCED NATIONAL SECURITY TAX OPERATES NEXT MONDAY ISSUE OF SAVINGS BONDS (By Telegraph.—Special to Times) WELLINGTON, Tuesday • A clause in the Finance Bill, introduced in the House of Representatives to-night, imposes the national security tax of Is in the pound on salary, wages and otner income. I The tax will operate as from next Monday, but those who pay on income other than salary or wages will be charged on this income as from July 1. The new tax, the proceeds of which will be paid into the War Expenses , Account, will be assessed and col- j lected with the social security charge. , Non-resident companies which operate in New Zealand will be liable 1 both for this tax and the social se- j curity charge. The Bill also levies the additional ! 5 per cent, sales tax and the new rates of succession duty announced j in the Budget. Half of the sales tax I revenue, all death and gift duties received after March 31, 1940, and j 3-23rds of income tax revenue for j the current year are also to be paid ; into the War Expenses Account. Another clause empowers the 1 Minister of Finance to acquire shares ir. New Zealand Woolpack and Textiles, Limited. Gifts made to the Government for war purposes are to be exempt from death and gift duties. Authority is taken to postpone the five-yearly census, which should i normally be held next year. An allotment of a single soldier of more than 2s a day to his widowed mother is not to be classified as income for purposes of the Social SeI curity Act. Borrowing Authority ; Authority for the Government to borrow £40,000,000 for war purposes at a rate of interest presribed by the Minister of Finance, and £18,000,000 for various other purposes, is contained in the Bill. The War Expepses Act passed last session empowered the Government to borrow £10,000,000 for war purposes, but this has now been increased by an additional £30,000,000. The £18,000,000 it is proposed to borrow for other than war purposes is allocated as follows: Public works, including construction of railways and additions to open lines, irrigation works, and the construction of roads and bridges, £5,500,000; main highways, £2,500,000; housing, £7,000,000; electric power works, £2,000,000; forestry, £1,000,000. NATIONAL SAVINGS BILL I * (By Telegraph.—Special lo Times) WELLINGTON, Tuesday The National Savings Bill, introduced and read a first time in the House of Representatives to-night, provides for investment by deposits in an investment account lor a fixed term at compound interest or by investment by the purchase of national savings bonds to be issued by the Post Office.

Any savings bank may be authorised to receive investments at rates of interest to be fixed by the Minister of Finance. Investments as small as Is and not more than £IOOO will be accepted. The Minister is empowered to fix the dates of repayment. Investors are given power in special circumstances to withdraw their money before the due repayment date, but in such cases the rate of interest is not to exceed that payable on deposits in the Post Office Savings Bank. Power is given to investors to withdraw interest. On the death of an investor payment from an investment account may be made without the granting of probate or letters or administration. Provision is also made for the issue of national saving bonds, which may be redeemed at any time before maturity on such terms and conditions as may be prescribed by the Minister of Finance. Money standing to the credit of an investor or an investment account can be used for the purchase of bonds. INCREASED FAMILY BENEFIT (By Telegrapli.—Press Association) WELLINGTON, Tuesday ! Provision for the payment ol j family benefits in respect of the sec- ! ond and subsequent children in a I family is contained in the Social i Security Amendment Bill, introduced and read a fire time in the House of Representatives to-night ! It operates from July 1, 1940. ; Local authorities liable for income tax under the new ‘taxation proposals will also be subject to social security taxation. Non-resident companies operating in New Zealand will be made liable for the social security charge. Where the beneficiary under the principal Act dies, it is stipulated i that benefits due between the time of application and death may be paid to the widow or dependent children.