H.—35

During the period covered by the above-mentioned instalments) a sum of approximately £767,500 was received into the Unemployment Fund on account of the general unemployment levy. Apart from contributions to the Fund by way of the levy, almost every person in receipt of salary, wages, and other income has paid a direct tax towards the relief of unemployment by means of the emergency unemployment charge. The amounts credited to the Fund from these sources during the period from Ist August, 1931, to 31st March, 1932, were as follows :— £ Charge on salary or wages .. .. .. .. 490,053 Charge on other income .. .. .. .. .. 220,245 £710,298 EXEMPTIONS. (a) Genebal Unemployment Levy. The classes of persons exempted from payment of the levy have remained unaltered, except for minor amendments. The powers of the Board to grant exemption on the grounds of hardship were, however, extended considerably, and, despite the reduction in the amount of the levy, a considerable number of applications were received during the year. The Board exercises its power in this respect very sparingly, although giving every consideration to genuine and deserving cases. An important clause in the 1931 Amendment Act empowers the Board to postpone the due date of any instalment of the levy in lieu of exercising its right to exempt on the grounds of hardship. This power has been availed of to a considerable extent in cases where the applicants are able to pay eventually, but through various circumstances have been unable to effect payment within the statutory period of grace. From 22nd July, 1931, to 31st March, 1932, postponement of the due date of instalments of the levy was granted to 431 persons, involving 1,524 individual instalments. Exemptions recorded since the inception of the levy up to 31st March, 1932, are shown in the following statement : — Total exemptions, 19,516.

Partial Exemptions.

The value of instalments not, collected because of partial exemption represents a sum of approxh mately £18,000. (,b) Emergency Unemployment Charge. Statutory exemption from payment of the wages-tax covers all females employed in domestic service in purely private residences and all workers employed on relief work undertaken by any local authority or public body pursuant to a scheme whereby the whole amount of wages received is refunded to such local body or public authority from the Unemployment Fund. All other wage and salary earners, male and female, are liable for the charge.* Exemption from the emergency charge on " other income " is provided in the Act for every person wholly exempt from liability for the general unemployment levy. This refers naturally to males only. In the case of women, who were brought by the 1931 Amendment Act within the scope of unemployment taxation for the first time, the charge on " other income " was made applicable only on a total income from all sources (whether assessable income or not) of not less than £250 per annum.f It has already been mentioned that the emergency charge on income other than salary or wages is imposed on almost every class of income whether assessable or not for income-tax purposes. Practically the only exemption in this respect is in regard to income derived from a British country overseas by a person resident in New Zealand and on which a special unemployment-tax is chargeable in that country.

* The 1932 Amendment. Act exempts persons under tlie age of sixteen years. f Reduced by the 1932 Amendment Act to £20.

7

Instalments. Class. I December, March, June, August, November, February, 1930. 1931. 1931. 1931. 1931. 1932.' I " I ** , , ' 1 1 Inmates of mental hospitals .. 3,344 3,575 3,613 3,668 3,682 3,716 Inmates of prisons, reforma- 1,071 1,155 1,228 1,486 1,410 1,151 tories, &c. Inmates of hospitals, charitable 1,064 665 835 428 352 367 institutions, &e. Students .. .. .. 852 910 1,071 535 570 283 Cases of mental and physical 4,205 3,261 2,422 1,345 1,841 1,128 disability, &c. Hardship'.. .. .. 836 1,228 1,172 882 732 228 Totals .. .. 11,372 10,794 10,341 8,344 8,587 6,873