DUTY ON BANK NOTES

Hokitika Guardian, 29 July 1930, Page 2

DUTY ON BANK NOTES

WHAT IT WILL YIELD. ADDITIONAL SUM OF £96,000 ANNUALLY. The increase in the duty on bank notes which it is proposed to make under the Stamp Duties Act will mean additional taxation of the six banks trading in the Dominion amounting to over £98,000 a year. The present rate of 15s per cent, on the average amount of notes circulating during each quarter is to be increased to 22s 6d per cent. The increase, which will operate as from July Ist. means an increase frofft 3 per cent, to 4i per cent, per annum on the bank rate duty. Averages of the note circulations of the six Associated Banks for the last four quarters were as follows: December 30th. 1929 £6,544,522 September JJtli. 1929 6,272,354 March 31st. 1930 6,417.038 June 30th. 1930 6,433,264 This gives an average for the twelve months ended, June of approximately £6,416,000, the duty on which at the hew rate of 4$ per cent, per annum will be £256.670. At 3 per cent, the duty would be £192,480, so that the new rate represents an increase of roughly £96,240 a year. TRANSFERS OF SHARES. Sharebrokers view with much alarm the Budget proposal to impose stamp duty upon transfers on shares in overseas companies at the same rate as is payable on the transfer of shares in New Zealand companies. Mr R. Wyn Kirkby, chairman of the Wellington Stock Exchange, and president of the New Zealand Stock Exchanges’ Association, said the' proposal if carried into effect would mean that investors in shnres would be mulcted in double stamp duty. They would have to pay New Zealand duty and also stamp duty in Australia or other country in which the company was domiciled. There was considerable trading in the Dominion in shares of Australian companies, and it was iniquitous that investors should have to pay double taxation on their dealings. The extra taxation payable in New Zealand stamp duty on transfers of overseas stocks and shares would represent, a heavy impost on the investor, and it was to be feared that it would tend to restrict business greatly. It appeared too, said Mr Kirby, that sharebrokers bad been “sorted out" for heavy taxation on their businesses in another direction, ns it was proposed to raise the annual license fee from £2 to £5. This was an in'Tense of 150 per cent. That the position was viewed with som’e consternation by sharebrokers was evidenced by tbe fact that his telegrams to other main centres had been crossed by messages from the chairmen of those stock exchanges, expresisng concern at the proposed increases of taxation. In all probability a. deputation representative of the Dominion stock exchanges would interview the Minister in Wellington on Monday.