TAXATION OF BANKS

Hokitika Guardian, 27 August 1931, Page 8

TAXATION OF BANKS

AUSTRALIAN EX A CTION S. Reference to the heavy taxation to which such institutions are subjected, chiefly by Governments, has been made at meetings of shar. holders of the trading banks. An examination of the figures shows that the 10 principal Australian trading banks pay in Government and municipal taxation an amounting representing more than £6,425 for each working day of the year. In 1930 those banks contributed to the public revenue in this way a total amount of £2,011,278. Compared with the amount paid in 1927 (1,415,237), the total last year showed an increase of £596,041, or 42.11 per cent. All industries have to bear a load of taxlit on, and for many the amounts that are paid in this way seriously curtad operations and lessen opportunities for the employment of more hands. Heavy taxation particularly affects the banks which are relied upon largely to provide the financial accommodation that enables industries to be carried ou. More than £2,000,000 a vear is a very large amount to withdraw from banking funds, observes a Melbourne paper. It has a direct ’ w, '(Tng oil tli' overdraft rate, A leading banker recently said that if his bank were free from taxation, as is the Commonwealth Bank, he could allow his customers overdrafts at 1£ per cent, less than the ruling rate.