Increased Revenue Expected

Hawke's Bay Herald-Tribune, Volume 81, Issue 5, 29 September 1937, Page 6

Increased Revenue Expected

Our Own Correspondent.)

better conditions Rise Absorbed by Heavier Expenditure ** * . SURPLUS OF £50,000 .

(From

WELLINGTON, Last Night. Increases in revenue under all headings of taxation are expected for the current financial year by the Minister of Finance, the Hon. Walter Nash. Tbo estimates of revenue, he said in the course of his Budget speech in the House of Representatives to-night, reflected the improvement in economic and social conditions. Practically the whole of the increase in revenue, however, is absorbed by heavier expenditure, and a balance of £50,000 to the good is expected. . In reviewing items of estimated revenue, Mr Nash said: — "Customs duties, the principal individual heading of revenue, are estimated to return a total of £10,500,000. This represents a little over £1,000,000 increase compared with the actual receipts for last year. Admittedly this is a particularly difficult item to estimate, depending as it dofes* to a large extent upon the vagaries of fashion and the actual date on which dutiable goods are cleared through Customs. On this occasion, being so far advanced . into the financial year, we have the advantage of particulars of impoits and of revenue to August 31 as a guide," and, based on this ixlformatioii £10,500,000 is a reasohable. estimate. Income-Tax Revision. "Income-tax/ the second largest revenue heading, is ' estimated at £7,500,000, compared with actual receipts of £6,619,000 for the previous year," he added. "This tax is assessed on the taxable income earned during last year, and the estimate has been computed largely on the basis of the returns now to hand. Taxable income .was undoubtedly higher last year than in the previous year, and £881,000 represents the estimated amount 6f the additional revenue from this source. ' ' Since the beginning of the year an expert departmental committee has been reviewing the incidence, principles, and administration of land and income taxation with a view to recommendihg means of correcting existing anomalies and of closing loopholes whereby payment of tax is heing avoided. Legislation will he introduced later in the session to give effect to th.e land and income taxation policy of s the Government. / • "Saies tax," Mr Nash continued, "is estimated at a total of £3,650,000, an increase of £605,000, or, 20 per cent., compared with last year's receipts. This item has shown a steady annual increase since its inception in 1932-o-i and is now one of the major items of revenue. "Highways irevenue, to .which reference has already . been made, is offset by an equivalent amount of expenditure. The generally prosperous conditions, together with bhe increase in the number of motor registrations which has taken place, will, it is anticipated, result' in a substantial increase in petrol-consumption. Under ■ the circumstances, the estimate for the current year has been 6hown at £3,058,000, compared with receipts totalling £2,503,000 for last year. "Stamp and death duties consist principally of death duties, which by their veify nature are difficult to es- ' timate with ariy degree of accuracy. '• Based, however, on the actual receipts of last year, and allowing for the improvement in values which 1/ s taken place recently, an increase oi £287,OOO has been provided for. thus bringing the estimate of a total of £3,450,000 for the current , year. Land-Tax Unaltered.

"Land-tax will be assessed ' on the same basis as last year, but provision will be made for relief of proved hardships. The power of the Gommissioner of Taxes in this connection is to be extended, and the necessary amending legislation will be introduced. The revenue for the current year has been estimated at. £1,000,000, compared with actual receipts of £1,048,000 during last year. "The remaining items of taxation caU for no special comment, oxcept that in total they represent an increase compared with the receipts for last financial year. "Interest receipts consist in the recoupment of interest from various ' State accounts, principally the Railways and the Post and Telegraph Department. The reduction of £102,000 compared with last year is due to a fall in the estimated net receipts from the raihvays. This in turn is due to inereased expenditure consequent upon .the restoration of the cuts m salaries and wages, together with the shorter working-week. Arising out of the improved general conditions, an increase in revenue has also been provided for, but in the meantime this is not estimated fully to offset the inereased expenditure. . "The final item in. the main heading® of revenue," Mr Nash said, "is 'other receipts,' which covers the profits of tho various State lending departments, registration fees. nationalendowment revenue, and the various miscellaneous items which are too small individually to justify separate headings. In total these are estimated to augment this year's revenue to the extent of £2,155,000, compared with actual recipts of £1,819,000 for last year. "In total, then, the revenue jfor

the current year is n§imated at £34,778,000/ which, as wto readily he ascertained, exceeds estimated expenditure by £50,000. "A summary of th« position is afl follows : — REVENUE 4>.

Taxation — Customs ... ... ... 10,500,000 Beer duty ... ... ... 950,000 Saies tax 3,650,000 Film-hire tax 80,000 .Gold-export duty ... ... 105,000 Highways .... 3,058,000 Stamp and death duties 3,450,000 Land-tax ... 1,000,000 Income-tax 7,500,000 Miscellaneous 45, (XX) Total taxation 30,338,000 Interest receipts ... ... 2,285,000 Other receipts 2,155,000 Total estimated revenue ... 34,778,000

£ £ Debt services ... 9,396,000 Exchange ... 1,700,000 Transfer of h'wys revenue ... 3,058,000 Other permanent appropriations 601,000 14,755,000 Annual votes — Social services ... 12,168,000 Other votes ... 7,505,000 : — - 19,673,000 Total main estimates ... 34,428,000 Supplementary estimates and contingencies 300,000 Ttl. estimated expenditure 34,728,000 Estimated surplus £50,000

EXPENDITURE