BUDGET PROSPECT

Hokitika Guardian, 28 July 1931, Page 5

BUDGET PROSPECT

TEA AND SUCAR. OPINIONS IN COMMERCIAL CIRCLES. No Budget in recent years has been awaited with greater interest than the one which Mr Forbes expects to bring down on Thursday next and there is considerable speculation as to the sources that the Minister of Finance; will tap dn order to secure the additional revenue that he requires. The contents of the Budget are a well-guarded secret, but it is confidently expected in commercial circles in Christchurch that it will provide for an additional duty of at least 2d, a lb 011 tea and that there will he a small excise duty on sugar. The reason wh.v these articles are expected to be used as a means of increasing the revenue of the Government is that at present, both are selling at low price-?, andmoreover they are more readily taxable than other commodities. TAXATION OP OIL COMPANIES. Some time ago Mr Forbes stated that he was looking into the position with regard to oil nnd petrol, and there is a general feeling that he may he considering some scheme of taxation in this connection, but imposed in such a manner that there will be no increase in the prices that the public are now paying. In view of the decrease in the consumption of beer it is considered that the Government will not seek additional revenue from this source. It is also the general opinion that the taxation on spirits has reached its limit. A reduction in the exemption under the income tax is generally anticipated, hut it is not considered likely that the Minister of Finance will interfere with the existing exemption on account of life insurance and superannuation pay-: ments. PAYMENTS BY INSTALMENTS. The opinion is also expressed fairly freely that provision ought to -be made for the payment of land and income tax by instalments instead' of in one sum, and it is hoped that the Budget may announce a change in this direction. In retail circles there are some fears that the Minister of Finance may be considering the imposition of a sales tax along the lines of the Canadian tax. , While extra taxation is considered to be unavoidable the hope is generally expressed that the Minister of Finance will make the burden as easy as possible and that he will suspendor postpone payments that can reason-, ably be deferred-