TAX ON INCOME AND LAND

Press, Volume LXXIV, Issue 22505, 13 September 1938, Page 12

TAX ON INCOME AND LAND

CONSOLIDATION NEXT

YEAR

STATEMENT BY MINISTER FOR FINANCE RELIEF FROM INJUSTICES t.l* PROMISED 1 From Our Parliamentary Reporter.! WELLINGTON, September 12. An indication that a complete consolidation of the land-and income taxation of New Zealand could be expected next year was given by the Minister for Finance (the Hon. W. Nash) during his reply to the second reading debate on the Land and Income Tax (Annual) Bill in the House of Representatives this evening. Mr Nash said that, in accordance with the promise given by the Government, the whole system of taxation would be reviewed, but the social security legislation had interfered, and it would not now be possible to give the matter attention till next year. Some of the most competent officers of the Government had been engaged on the subject, but the social security legislation had interfered with their work. , A complete consolidation of tne ianu and income taxation of the Dominion would be undertaken next year. A number of anomalies had appeared in the land tax legislation and many representations had been received by the Government on this subject. Where there was injustice relief could be expected before the end of the year. It should be remembered that, for taxation purposes where a case was under consideration, if an adjustment was recommended at- the end of the year relief could be claimed when the returns of land or income tax were made at the beginning of the year. The whole procedure would be reviewed next year. Origin of Increased yields There had never been more absurd statements in regard to taxation said Mr Nash, than those made lecen y 'n the House. The increase ot L10.000.0j0 in the receipts from taxation was not because of a rise in the incidence o. taxation, but because of the rise m t-io total income of the people. Tne come of the people had increased 'A £30,000.000 in one year and fiom I.MJ to 1938 had increased by LjOOI.J/JJ. The yield from income taxation m increased by £7.000,000. but of 1 only £I.OOO 000 was represented by increased incidence ofJ taxation. “The test is the ability of the mdi vidual to pay.” said Mr Nash. Du* ability to pay has never been RH-alci than it is to-day. It is not the arnoum of tax a person has to pay that counts, but the amount he has left. Mr H. G. Dickie (National. Patea). You want everybody down to the same IG Mr Nash: Not at all. But that is the sort of argument that has been used J. Poison (National, Stratford)- All the same, you expect tms year an increased return from income fax. and ill Ihe Budßtd you ostarat STo'saffl" 8 for the returns from taxation to go down without the income of the people going down. This year it was expected that while the Incomes of the people internally would be greater, the return from customs duties m c °h ld h ad smaller, because imports, which had been abnormal, would be sjnallorMr Poison; You take credit for the higher price pf dairy P r ° duc £ kut W |JJ you take the discredit for the fall in th not done anything to control the price of wool, but we Hava 0 organised the marketing o( dairy P TtebUl was then putthMMla the committee stages, read a thud time, and passed without discussion.