THE FINANCE BILL

Dominion, Volume 12, Issue 55, 29 November 1918, Page 4

THE FINANCE BILL

MORE WAR LOANS A LITTLE GIFT TO MEMBERS FIVE SHILLING NOTES The Finance Bill, providing for the financial proposals mentioned in the Budget, and also for other things less important, was circulated in the House of Representatives yesterday,' and it made rapid progress through the House last evening. The first clauses of the Bill provide for tho continuation of the War Expenses Account, established at the outbreak of war in 191 L Although the war is over, ivnr expenditure must continue, and loan' moneys must bo obtained. The clause provides for the continuance of payments after the methods followed during the war.

A speciol sinking fund for the'repayment iof war loans is established, and every year the Minister, of Finance is required to pay into tho Sinking Fund out of the Consolidated Eund an amount equal to one per cent, of the total capital moneys borrowed for war purposes. Clause 8 of the Bill makes members of Parliament a little present of .SIS each. It empowers the Postmaster-General to issue to any member of Parliament in any month postage stamps of a total value of £2—£'U u year—and there is k proviso that the clause is to-be deemed to have been in operation since April 1, 1917. All the stamps so issued are to have the word "official" overprinted thereon, and are to be available for the payment of postage and. telegraphic) charges, but for no other purposes. Amendments to the stamp duties legislation make provision for the taxing of an option or right of purchase- of land as if it were an agreement to purchase, also for the taxing of a transfer of shares by way of exchange for shares, as if it were an ordinary sale of shares. Duty is also to be payable on transfer of equitable interest in shares in the same manner as on the transfer of a legal interest in shares. It is not to bo lawful to use a stamp-recording machine to impress receipts. The endorsement of a cheque,.other than a cheque payable to bearer, is to be deemed to be a receipt for tho purposes of taxation, and is to be subject accordingly to stamp duty, unless, before endorsement, a duly stamped receipt for the amount of the cheque has been executed by the endorser.

Foreign insurance companies and the Government Life Insurance Department are to be exempt from war taxation. Power is taken to borrow ,te.n millions sterling for war purposes, and the loau is tp be raised in New Zealand, the Minister taking power to raise any part of the money by Treasury bills or by agreement with the Imperial Government without formal security. Power is taken to issue war loan certificates and to accept payment for them by instalments. Persons in the service of the Government, or of- any other employer, may ar-' range to have purchase money for certificates deducted from their, salaries. Provision is made also for the issue of Post Office war loan inscribed stock bearing interest at 5 per cent., but this stock is to be issued in amounts of not less than I'lOO, and not more than ioOO. Interest on this stock is to be subject to income tax, but interest on all other sections of the loan' interest is to be free of income tax. No rate is 1 specified in the Bill, but the rate will be, as formerly, 4! per cent.

Provision "as .in the last Finance Act is made for the compulsion of subscriptions to the loan.

The minister of Finance is empowered to borrow .£2,500,000 for certain publio works, and also JU270.000 for the purpose of providing cold storage, a million for the purposes of discharged soldiers' settlement, nnd JS'2OO,OOO for purposes of afforestation.

The issue of five shilling bank notes is to„be permitted. Instead of transferring Post Office Saviugs Bank moneys on loan to the Consolidated Fund, the-Minister may retain profits of the bank to the amount of .-i:350,Q00 in a special account to be known as Hie Post Oliice .Savings Bank lieserve Account.