THE FINANCE BILL.

Hokitika Guardian, 15 December 1921, Page 2

THE FINANCE BILL.

INCREASE IN AMUSEMENT TAX. TEN PER CENT ON RACING STAKES. SPECIAL TO GUARDIAN. WELLINGTON, December 15. Very important provisions are contained in the Finance Bill introduced to-night. Tlie Amusement Tax is to be Increased on the basis of one penny for each six pence. Taxes on dividends and stakes are to lie increased five per cent. A rebate is to he allowed for prompt payment of income tax. Increased revenue will amount to about £400,000 while concessions in income tax will cost about £300,000. The Prime Minister explained the Bill briefly. He said that he was proposing to allow five per cent rebate in connection with income tax due in February. The taxpayer who chose to pay income tax in advance might do so, arid receive interest at the rate allowed by the Post Office Savings Bank. We propose to get a little more out of racing. Two forms of taxation are provided, one on dividends, and the other on stakes. This is not likely to affect Country Clubs. The dividend duty is to he one shilling for every pound, or fraction of pound. The stakes duty is increased from one per cent to ten per cent. I am giving Club’s hack tlieir fractions. I understand "racing people will accept this on the understanding that the scheme will he reconsidered in two years. I think that it will be necessary in two years to review the whole scheme of taxation. I think by that time that it will he possible to revise taxation. Certain companies had been issuing debentures asserted to be free of income tax. The impression had got abroad that holders of these debentures might have the right to claim a refund of income tax although, as a matter of fact they had not paid it. The Bill cleared up the point by providing that there should be no refund. The law of last year regarding the collection of income tax on the debentures of local bodies was being amended. The duty of collecting the tax had been imposed upon local bodies and they had objected. The Bill provided that the duty of a local body would be to supply tho Taxing Department with a list of debenture holders. The Department would then undertake the collection of the tax. If the local body did not supply the list it would be liable to pay the tax. The Bill provides that calculating the assessable income of co-operative dairy companies there shall be deductable from the gross income of the company, an amount equal to the amount paid or payable during the income year to suppliers in respect of milk and butter fat supplied.