WAGES TAX

Bay of Plenty Beacon, Volume 9, Issue 62, 12 April 1946, Page 7

WAGES TAX

REDUCTION AFTER MAY 12 ? DOUBTFUL POINTS CLARIFIED Points in doubt regarding the reduction in wages tax have been clarified by the authorities. The reduction in wages tax from 2s 6d to 2s in the £ will apply after May 12 to salaries, wages and income from which tax is deducted at the source by anemployer or person paying the money.

The new rate of 2s will also apply to all income other than salary or wages—mainly rent, interest, ‘ farming and business profits—derived during the 12 months ended March 31 of this year. It was on May 11, 1942, that the tax was raised from 2s to 2s 6d in

the £. The increased rate was applied to salaries and wages from that date on, but it was made retrospective in the case of income other than salaries or wages; those with such income derived during the year that had ended on March 31, 1942, paid the new rate of 2s 6d. An advantage was, therefore, gained by the salary and wage-earners, but the balance is now being restored. It will not be necessary to pay further social security registration fees—the £1 a year or 5s a quarter for males over 20 years of age, and 5s a year for females and youths under 20 years of age. Those who are in default with their payments, however, are still required to meet their obligations. Those who have paid registration fees in advance for May of this year or for periods beyond that month, if they desire refunds, must apply for them in writing to the Commissioner of Taxes, sending also their levy books, which after checking, will be returned to them.

Officials of the Rationing Controller’s office, the Social Security Department and the Land and Income Tax Department stated that production of levy books would not be required for any purpose in future, and contributors could do what they wished with them.