H.P. TAX PLAN DROPPED

Press, Volume C, Issue 29513, 13 May 1961, Page 16

H.P. TAX PLAN DROPPED

Australian Govt. Changes Mind (N.Z.P. A.-Reuter—Copyright) CANBERRA, May 11. 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 yesterday that the decision to drop the tax demonstiated 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 reenacted. Tax On Notes 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 beMeved to reflect growing uneasiness by senior Ministers at the increasing impact of their economic controls. The measure aimed particularly at borrowing by hire-purchase companies, land development companies, and similar enterprises which the Government regarded as speculative ot inflationary.

C. L. STURGE AND CO C. L. STURGE, Member of the Christchurch Stock Exchange, STOCK AND SHAREBROKERS, 176 Hereford street, Christchurch. Cable and Telegrams: "Stureo.” P.O. Box 85. Telephone 65-746.