PROSPEROUS CANADA

Hokitika Guardian, 17 April 1926, Page 2

PROSPEROUS CANADA

TAX REDUCTIONS, (Australia & N.Z. Cable Association.] OTTAWA, April 15, Hon. Mr Robb; Canadian Minister of Finance, in bringing down his budget to-day, announced tax reductions, affecting all classes. They are estimated at twenty-five million dollars. They- are chiefly on income tax. Reviewing the Dominion’s finance, Mr Robb stated that the ordinary revenue had increased by 29,965,520 dollars. Ho said that there was a surplus of the ordinary revenue over the ordinary expenditure amounting to fifty-five million dollars. He added that the national railways (hare earned thirty-three million dollars in excess of operating and the income charges, and exclusive of the interest charges on the line. Canada’s trade, said the Minister, showed a favourable balance of no less than 402 million dollars, thus constituting a record for ariv year since the War. Unde/r ‘budget proposals, ’the income tax exemption is increased from two thousand dollars, to three thousand dollars for married men without dependents, and from one thousand dollars to fifteen hundred dollars for single men. Penny postage throughout Canada will he resumed on July- Ist. The duties on automobiles at a rc% tail value of not more than twelve hundred dollars, and oil motor trucks has been, reduced to twenty- per cent in the general tariff, to seventeen and a half per cent in the intermediate tariff and to twelve and a half per cent in the British preference tariff. On automobiles valued at more than twelve hundred dollars, the general tariff is reduced to twenty-seven and a half per cent, the intermediate to twenty-five per cent, and the British tariff to fifteen per cent. To encourage the Canadian automobile industry, :i drawback of twentyfive per cent is to he paid on the materials used in manufacture, provided that at least fifty per cent, of the finished article is produced in Canada. The Minister announced a surplus of 22,353,000 dollars towards the reduction of debt over all the services, and stated that the British preferential tariff will apply only to goods conveyed direct without transhipment after January Ist next.