LAND AND INCOME TAX BILL.

Hokitika Guardian, 8 September 1920, Page 2

LAND AND INCOME TAX BILL.

IMPORTANT PROPOSALS

(Onr Parliamentary Ppprpspondpnt,

WELLINGTON, Sept. 7

The Land and Income Tax Bill was introduced to-night. This deals with taxation for next year and contains ipapy iqjpqrtapt proposals. Mr Massey explained that lip was giying considerable relief to mortgagers. Thp exemption was being increased from £1,500 unimproved value to £4,000, which would disappear on a sliding scale at £B,OOO. Owners of improvable |apd h,eld in unimproved condition are to bepopip liable to fifty per cent extra taxation if they dp pot begin improvements to a specified extent by 1923. The Bill increases exemptions from Jpcome Tax in the cases of family men, to £56 for income for each, child. An exemption of £SO is allowed also :f

the taxpayers is maintaining his mother. The Bill proposes to discriminate to the extent of. ten per cent in favour of earned incomes up to £2,000, after which they are treated alike. Land tax rates are amended. The highest irate of taxation under the present law is reached at the unimproved value of £192,000.

The Bill proposes that the highest rate shall operate at the unimproved value of £138,000. There is a slight decrease in taxation on estates up to £9,000 unimprovedvalue. Above £IO,OOO the new rates are to be higher than the present rates, but the increases do not become considerable until the unimproved value of £30,000 is reached. The Bill continues the graduations of income tax from £6,400. The present maximum, to £IO,OOO. The trading departments of local bodies and also Government trading departments j are to pay income tax. Racing Oubs are to foe deemed not liable to income tax until next year*. This relaxes clubs -'of past taxation for which the Supreme Court declared them to be liable.