WAR FINANCE

Evening Star, Issue 23381, 26 September 1939, Page 6

WAR FINANCE

COMPLETE TAXATION PROPOSALS NOT READY BOTH UAH AND HIGHER LEVY LIKELY [From Ode Parliamentary Reporter.] WELLINGTON, September 26. An important instalment of the war finance measures will be introduced in the House to-night, but the complete taxation programme will not be ready for presentation to Parliament this evening. The principal feature of to-night’s business will bo the introduction of the Finance Bill, creating a special War Expenses Account, containing authority for. the transfer of votes already passed hy Parliament, including large sums from the Works Estimates which como under tho heading of defence expenditure. These sums, of course, can be increased in accordance with requirements. Patience will still have to be exercised in regard to the full extent of the taxation programme, although the Minister of Finance is likely to indicate the amount of loan authority required,

Lobby reports suggest that lively discussions on the subject of war loans have taken place within the ranks of the Government Party, because a substantial body of Labour opinion is said to be against trying the Spartan policy of financing New Zealand’s war expenditure entirely from current income. It is believed that the advocates of a war loan have substantially carried their point, with the result that both loans and increased taxation are to be the expedients.

Great secrecy surrounds the caucus discussions of the Government Party, and no consultations appear to have taken place with representatives of tho National Party on the subject of war finance, although it is believed that the general principles have now been agreed upon by tho Government Party, The opportunity is being taken of dealing witli some anomalies in land and income tax taxation, and a measure to be introduced this week will cover these points, as any existing features of taxation which are unfair would press with increasing hardship on the taxpayers concerned when tho general rates of taxation are substantially increased.

The machinery necessary for bringing farmers within the scope of income tax will bo included in this Bill.