TAXATION REDUCTIONS

Chronicle (Levin), 28 January 1949, Page 4

TAXATION REDUCTIONS

(NZ.KA

, — Reuter*

Austraiia to Make, Cuts This Y«ar

> Som/rfaM)

Received Friday, 11.5 a.m, . CANBERRA, Jan. *27. The Federal Government . is expected to cut income tax rates by between 3 and 33 1-3 per cent. ifrom -the first of July next. Cuts, which will apply to wage "and sal!ary earners in all income groups will save the taxpayers between 30 and 35 million pounds yearlyv- -The heaviest eiits' arelWpected* on the jlowest incomes.1 r J 1 " ; The Government has also exipressed its intention of relieving jindirect taxation, particularly ! saies tax, and eustoins and excise iduty. At a Cabinet meecing Ministers tentative'y agreed to the tax cuts, and finance and taxation offieials are now working .out details for submission to another Cabinet meeting, probably in February. i It is believed that the new ad•justments will exempt from income tax many thouSands of lower wage earners with families, though these people will still pay small amounts as soeial service contributions. The buoyancy of Federal revenue has made the adjustments possible. On the Treasury returns for thq first six months of this financial yeai- the revenue from all forms of taxation -could be '£40,000,000 above the Budget estimates for the year. Ministers afe also reported to be examining ehild endowment,. and pensi-ons for widows, aged, exservieemen and widows of soldiers, all of which were increased in the current financial year