LEGISLATIVE COUNCIL

Evening Star, Issue 22463, 7 October 1936, Page 8

LEGISLATIVE COUNCIL

- \ TAXING BILLS PASSED . [Per United Press Association.] WELLINGTON, October 6. The Legislative Council met at 2.30 p.m. The second reading of the Land and Income Tax Amendment Bill was moved by the Leader of the Council (the Hon. M. Fagan), who said the' Bill was necessary to allow the Government to put the budgetary proposals into operation. The pension increases would cost £1,800,000. It was proposed to raise £1,000,000 from income tax and £BOO,000 by the graduated land tax. Hon. Vincent Ward said he regretted that taxation had been increased. Hon. M. Connelly suggested that the Government might consider taxing the reserves of companies in excess of the paid-up capital. There was need for an inquiry into the huge reserves being created. Hon. E. R. Davis said he regretted the increased taxation, and was of the opinion that business initiative would be hindered. He quoted one company which, as a result of the legislation* would have 9s 5d in the £1 to divide among the shareholders, compared with 13s 7d last year. Hon. Rangi Mawhete said the graduated land tax might cause hardship among the Maoris.

Hon. J. Alexander said that the people would not oppose taxation if they knew it was for defence. He hoped that defence taxation would be increased.

Hon. C. J. Carrington said that increased taxation must mean high prices through increased costs of production.

Hon. W, H. M'lntyre made a plea for inserting a. hardship clause in the Bill.

Hon. H. A. Russell opposed tbs graduated land tax. Replying, Mr Fagan said that company taxation was greater in 1921 than it was under the Bill. The graduated land tax placed no hardship on anyon< who owned land in 1931. The Bill was read a second time os the voices. a The Land and Income Tax (Anmial) Bill was also read a second time oi the voices.

Both Bills were put through all then stages and passed, and the Council adjourned at 4.30 p.m. till Thursday.