A FIRST CLAIM

Evening Post, Volume CXVII, Issue 23, 27 January 1934, Page 10

A FIRST CLAIM

A hope of some tax reduction next year was held out by the Prime Minister when replying to a request for a reduction in the gold tax. The gold tax question would then take its place "along with the rest," said Mr. Forbes. But when this time comes there is one tax which should have-prior consideration. This is the surtax on income from investments. It was originally imposed instead of I a direct reduction. When the direct reduction was afterwards effected by imposing a stamp duty the Minister of Finance, (Mr. Stewart) stated plainly that the investment income tax would have to be reviewed. Since then the stamp duty has been replaced by a greater reduction through conversion; but the investment income tax remains. Before the Government considers relief to any industry it should act fairly and abide by its undertakings. It could do this, however, and also make other reductions without embarrassment and with distinct advantage to the community if it followed the course clearly indicated by the Prime Minister's own statement of facts. Mr. Forbes said that something like £6,000,000 extra would come into the country from the wool sales and several millions extra would be brought in by the meat industry. Yet he stated on another occasion that the Government was not contemplating making any reduction in the exchange rate. It is high exchange that •is weighing down the Budget with heavier charges for overseas interest and the unknown, but certainly heavy liabilities of the "suspense" account for bank indemnity. When this incubus is shifted, tax relief will be possible.