B.— 6

5

The result of the year's operations is better than was anticipated, as, although last year the indications were for an increase in Customs revenue over the previous year, it was not expected to reach the excess of £584,000 over the estimate. While it is a matter for satisfaction that the year's working shows a substantial surplus it has to be recognized that the bulk of it comes from sources that cannot be counted upon to persist. NET CHARGES ON THE TAXPAYER. In order to illustrate our present position in regard to taxation as compared with that of 1914, I have prepared a statement showing the comparative charges on taxation for the various services provided for out of the Consolidated Fund. In making this comparison it is necessary to allow for the fact that the receipts and payments for 1913-14 are not comparable with those for 1925-26 without considerable adjustment, because within the period covered there was a fall in the purchasing-power of the pound. To obtain a true comparison between these two years the figures for 1913-14 should be increased by about one-half. This table will enable honourable members to gauge the weight of the war charges and social services.

Net charges on the taxpayer.

Revenue Receipts.

In order to facilitate the comparison of costs I have had the amount per head of mean population assessed in each case and the respective amounts for 1913-14 increased as mentioned above. That is to say, the total taxation receipts for 1913-14 averaged out at £5 Bs. 4d. per head, but in the table above have been increased by one-half —to £8 2s. 6d. — which figure approximately represents the average receipts in 1913-14 in the values of to-day.

Per Head of Mean Population. — 1913-14. 1925-26. ,,,,,, ,, ,, , ; , 1925-26 (Adjusted to a | fActuall comparable basis). | £ £ £ s. d. £ s. d. Customs .. .. .. 3,426,745 8,333,877 4 11 5 6 0 5 Beer duty .. .. .. 127,041 629,558 0 3 4 0 9 1 Land and income tax .. .. 1,321,722 4,635,175 1 15 3 2 8 3 Stamps .. .. .. 1,221,971 3,359,868 1 12 6 3 6 7 Miscellaneous .. .. .. 11,567 13,909 £6,109,046 £17,022,387 £8 2 6 £12 4 4 Charges on Taxation. Allocation of Taxation Receipts per Head of Mean Population. — 1913-14. 1925-26. 1913-14 (Adjusted to a , OM ,» comparable ' " ' basis). £ £ £ s. d. £ s. d. War pensions and debt charges .. .. 5,101,015 .. 3 13 3 Other debt charges .. .. 1,402,222 1,656,135 1 17 3 13 9 Social services (health and hospitals, 2,123,815 5,735,419 2 16 6 4 2 4 pensions and education) Defence (land, sea, and air) .. 538,373 891,099 0 14 5 0 12 9 Other charges (general and admini- 1,640,839 2,483,040 2 3 7 1 15 8 strati ve) Surplus for year.. .. .. 403,797 1,155,679 0 10 9 0 16 7 £6,109,046 £17,022,387 £8 2 6 £12 4 4