STAMP DUTY.

Dominion, Volume 7, Issue 1892, 29 October 1913, Page 4

STAMP DUTY.

EXCHANGES OF LAND. AT FICTITIOUS VALUES. 'Die Hon. A. L. HERDMAN (Attor-ney-General) moved the. second reading of "the Stamp Duties Amendment Bill. The principal provision of the Bill, he said, was that stamp duty should ho paid upon exchanges of land. Up till the present time the,so exchanges of land were exempt from duty-t-upon what principle it was impossible to say. Probably, when tho Stamp Act camo into force in New Zealand it was drawn on the lines of the English Act which exempted exchanges of land. ■ It had been found that pschaogos of laud,

which were frequently mado at fictitious nominal values, had led to a very undesirable species of speculation. (Hear, hear.) This Bill would provido that exchanges would be .taxable in tho same way as if. the sale wore for monetary consideration. Other clauses in tlio Bill provided for matters of less importance. Mr. G. WITTY (lliccartou) approved of tho Bill for the reason that exchanges at fictitious values were frequently the means of ruining people. Checking Exchanges. Tho Hon. D. BUDDO (Kaiapoi) asked whether it was the intention to charge cuty on both properties exchanged, lie was in favour of ohecking exchanges, and of stopping many of them, but it was conceivable that a hardship would be inflicted by the levying of duty on both properties in certain cases where an exchange was really desirable to the partios. Tho Hon. A. T. NGATA (Eastern Maori) spoke of tho effect of tho Bill on exchanges of Maori land. Apparently a change was contemplated in tho assessment of stamp duty on these exchanges, but he would suggest that thero were sufficient safeguards already against speculation in exchanges of Native laud. The Bill Approved. Mr. E. NEWMAN (Rangitikei) said the Bill would be approved throughout the country. Thero was no doubt that the inflated values of country lands v/ere largely brought about by tho vicious system of oxobaiigcs, brought about by certain land agents. In some districts this was a very marked evil, and the rosult of it was that all the land was inflated in value, and all the fainiers suffered. Ho was not sure tnat the provision in the BUI would bo sufficient to prevent exchanges. Tho Bill would bo approved also by the better class of 'land agents, who had for years done thoir best to put a stop to exchanges of land at fictitious values. Mr. H. G. ELL (Christolnirch South) urged that the stamp duty on" safes of hind ought to bo increased abovo the piesont rate of 15s. per cent-., in order that tho State might take a bigger share of the unearned increment of lands. Revenue derived from tho increase of stamp duty should be earmarked for a fund for tho increaso of widows' pensions. Mr. T. M. WILFORD (Hutt) said tho Bill was a good Bill, but'ho did not think it would have the effect of proventing trafficking in land by way of exchange. It would simply mean that those. people who exchanged land, and who had not paid duty in tho past, would have to pay it in future. Mr. J. H. ESCOTT (Pahiatua) argued that tho collection of duty, while it might not prevent exchanges of land, would prevent exchanges at fictitious values. Mr. E, P. LEE (Oamaru) agreed with the opinions expressed by the member for Hutt. Sir. D. BUICK (Palmerston) said that ho did not think that tho Bill would stop exchanges of property, but he* did not think they should bo prevented. The Bill would, however, go some way to stop tho mischievous exchanges of land at fictitious value. Mr. Russell on Pledges. . Mr. G. W. RUSSELL (Avon) charged tho Government with having broken another of their pledges in bringing down a Bill to increase taxation. He did not believe the Bill would purify tho commercial atmosphere, but it- would have tlio effect of bringing a few,thousand pounds- a year into tho coffers of the Government. SIR WALTER BUCHANAN (Wairarapa) replied to the member for Avon. He said the Government had promised to rcduco the cost of living, rather than to reduce all kinds of taxation, and thoy had applied thomselves to making; tho incidence of taxation moro equitable. He commended tho Government for having introduced tiro Bill. SIR JOSEPH WARD (Awarua) repeated Mr. Russell's chargo that the Government wore not carrying out the policy of taxation outlined by their leader. Ho wanted to know when the Government would produco their tariff, and their' proposals to tax motor-cars. How much extra taxation would be obtained from the Bill? He ventured to estimate the amount at £150,000. "Protagonists of the Land Shark." Tho Hon. A. L. HERDMAN, in reply, said it was somewhat remarkable that two honourable gentlemen on tho other side of the House, tho member for Awarua and the member for Avon,,, should pose as the protagonists of tho land shark. They attacked the, Bill, and tho only object of tho Bill was to impose taxation on people who now escaped It and to remove an anomaly in tho present law. Wi.th regard to the increase- of taxation, it was tho first duty of tho Government to extricate tho country from tho muddle in which thoy found •it when thoy took office. This must bo their primary duty, and, as it would take threo years or thereabouts, thoy oould not bo expected to reduce taxation until after that period. Then they would do it on sound business lines. Replying to Sir. Ell ho said he could not promise that tho taxation obtained from the Bill would be ear-marked for widows' pensions. Ho did not believe in tho ear-marking of any taxation for any particular purposo, and in any case there were sufficient funds for the payment of widows' pensions.