TAXATION CONCESSIONS

Chronicle (Levin), 4 August 1948, Page 5

TAXATION CONCESSIONS

(NiZ.PiA.-

-Reuten

Federal Cabinet Approves Reductions

Copyright )

Received Tuesday, 7 p.m. CANBERRA, August 3. , The Federal- Cabinet has decided 011 taxation eonee !8,ioiis an4 ihcreases in.soeial ser\h-es paymen^s which are believed to total about £46,000,000. The , decisions have still-to be ap^f; proved by the Federal Parliament ary Labour caucuS which. meets on August 30.' Cabinet is believed to . have approved these eonceSsions : — Firstly, income tax concessions amounting to . between £28,00,000 and £30,000,000 and ranging from 30 per eent on the income of £350 yearly where the taxpayer has a wife and one ' child, to 3 per cent on a(n in- • come of £15,000 ; secondly, . an 1 increase of 2s 6d in ehild endowment payments ,• .costing about £6,500,000; thirdly, an increase of 5s weekly in.age/ invalid and widow pensions,' costing about £7,000,000. Cabinet has still to consider a. proposal by Mr. Chifley for cuts ranging from 10 to I2| per cent in the saies tax on consumer goods and other concessions 011 indirect taxation amounting in all to about £5,000,000. It is believed that Mr. Chifley proposes a reduction in, excise on tobacco and cigarettes and to a lesser extent on beer. The present Cabinet meeting is one ■ of the most important since the Government came into power. Ministers studied figures showing that • taxation revenue. in the past year, had yiclded £414,000,000 or.'£68,000,000 more than was budgeted for, but that expenditure was also well above estimates. . The Cabinet decisions are only .recommeridations to the rank and file of- the Party but' because of the sharply tising . cost of living and the etfect.'qii^ lower incomes, full apprpyal isjj expected, ' ■