INCREASES IN INCOME TAX

Evening Post, Volume CXXII, Issue 31, 5 August 1936, Page 6

INCREASES IN INCOME TAX

Another £800,000 from the Land

; PENSIONS BILL INCREASED ALL ROUND

■ /Government will Spend £5,000,000 More

MINISTER ANTICIPATES SMALL SURPLUS

An additional expenditure 6f approximately £5,000,000, increases in income taxation estimated to yield £1,000,000, and the reimposition of the graduated'land tax, estimated to bring approximately £800,000 to the Consolidated Fund were the outstanding features of the first Budget of the Labour Government presented in the House of Representatives last evening by the Minister of Finance .(the Hon. W. Nash). There were crowded galleries, and the Minister's statement was followed with the .closest attention by the House and by the public. Broadcast arrangements- also enabled • thousands of people throughout the country to hear details of the Government's financial programme for the current year. The new income tax schedules will provide for the payment of tax at the following rates:—For earned incomes of individuals (but not companies) a basic rate of Is 8d in the £ increased' by l-100th of Id for every £ of taxable balance up to £5500 and thereafter l-150th of Id for every £ up to a maximum of 8s 2d in the £ reached at a taxable balance of £8950. Existing exemptions are to; remain, with the exception that in future no exemption will be allowed for employment tax paid. , . The general provision for exemption up to £210 is not to apply to companies, for • whom the maximum rate is to be 7s 6d in the £ reached at £8950. Graduated land tax is to be on the basis of Id in the £ up to £5000, increasing by grades to 6d on £45,000. There is to be a flat rate of 6d above £45,000. > > No alteration is made in Customs duty or in sales tax. The Minister estimates that the Customs duty will yield nearly £1,000,000 more than last year. The Budget makes provision for a greatly-increased vote for pensions, all classes of which are to be on a more generous scale. Old age pensions are to be increased to £1 per week as from July 1 last, and more liberal provisions are made respecting qualification. The pension for widows with dependent children is to be increased from 10s to £1 a week, and deserted wives,with dependent children are to have the right to qualify for.pensions ■ fon the same basis as widows. ■ / There are to be increases in war pensions, miners incapacitated through occupational,diseases are to be eligible for pensions, and miners' widows' pensions are to be restored.. . . ; / , In addition, the Government proposes to provide a pension for invalids at the rate of £1 per week; plus iOsr for a >vif c and 10s for each child under 16 ■ ■ years.' -v \ ' A vigorous programme of public works is to be prosecuted, the cost being estimated at over £10,000,000. Requirements for this year's programme will ; -;be met without the raising of a loan.. The Minister makes it plain that there is to be no further overseas borrowing, except for conversion purposes... - * : Social services are to receive greater consideration, and increased votes are provided for accordingly. - " - - . - • . ■ -w , The, Minister estimates that 'the revenue for the current year will be £31,067,000 and the expenditure £31,054,000, leaving a small surplus of £13,000 on the year's operations. v ,-, \ ' .