INTEREST TAX
Federal Govt. Drops Plan
(N^P.A.-Reuter— Copyright) CANBERRA, May 10
The Federal Government has dropped its plan to impose a permanent tax on the interest which companies pay on borrowed money. This will lessen the restraint on hire-purchase. The Prime Minister (Mr Menzies) told a Government meeting today that the decision to drop the tax demonstrated that the Government’s economic policy was adaptable to changing circumstances.
The Treasurer, Mr Harold Holt, said the interim act, which applied the tax for this year only, would not be re-enacted. The plan to tax interest on notes convertible into shares would go ahead. The decision to drop the other tax has caused wide surprise, according to observers. It is believed to reflect growing uneasiness by senior Ministers at the increasing impact of their economic controls. The measure was aimed particularly at borrowing by
hire - purchase companies, land development companies, and similar enterprises which the Government regarded a% speculative or inflationary.
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https://paperspast.natlib.govt.nz/newspapers/CHP19610512.2.236
Bibliographic details
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Press, Volume C, Issue 29511, 12 May 1961, Page 20
Word count
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158INTEREST TAX Press, Volume C, Issue 29511, 12 May 1961, Page 20
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