VI

8.—6

Estimated Customs Revenue por 1921-22. To enable an estimate to be made of the revenue to be expected from Customs duties during 1921-22, inquiries have been made from merchants in all branches of trade. The consensus of opinion is that, in quantity, the imports will be considerably less than last year's, and that in prices there will be an all-round decline of from 17|- to 25 per cent. In practically all.branches of trade it is estimated that in stock lines of manufactured goods there is a sufficient quantity in the Dominion to meet the requirements of the current year. The comparative shortage of money in circulation will have the effect of causing those requiring goods to purchase, as occasion demands, from stocks held in New Zealand, thereby reducing the amount of imported goods. The revenue for the first two quarters of the current year is £1,577,287 less than that of the first six months of last year, and this may be taken as an indication of the diminished returns expected for the balance of the year. Taking all the foregoing circumstances into consideration, the Customs duties are estimated to produce £4,900,000, and Excise beer duty £500,000 ; bonded-warehouse duty, timber-export duty, and other receipts, £7,000 : total, £5,407,000. Summary. £ Customs duties .. .. .. .. 4,900,000 Excise beer duty .. .. .. .. 500,000 Bonded-warehouse duty, timber-export duty, and other receipts . . .. . . . . 7,000 Total .. .. .. £5,407,000 During the recess a departmental Commission was employed revising the Customs tariff, and resolutions affecting the tariff will be submitted for your consideration this evening. LAND AND INCOME TAX DEPARTMENT. The net receipts in this Department for the past year amounted to £9,937,923 (land-tax, £1,688,978 ; income-tax, £8,248,945) ; and compared with the collection for the previous year show an increase of £2 010,255. Land-tax. The land-tax receipts compared with those of 1919-20 show an increase of £131,075. The comparison is as follows : — £ 1920-21 .... .... .... 1,688,978 1919-20 .... .... .... .... 1,557,903 Increase of .... ..... £131,075 a — — This increase is due principally to the mcreased value of land in districts revised under the provisions of the Valuation of Land Act. Income-tax. The income-tax receipts compared with those of 1919-20 show an increase of £1,879,180. The comparison is as follows : — £ 1920-21 .... .... .... .... 8,248,945 1919-20 .... .... .... .... 6,369,765 Increase of .... ....£1,879,180 The increase is due mainly to the large growth in both the number and the incomes of taxpayers brought about by the increased value of business during the income year ended 31st March, 1920, and in part to the investigation work and closer inspection of taxpayers' returns.