INCOME TAX BILL

Hokitika Guardian, 4 May 1932, Page 5

INCOME TAX BILL

BEFORE THE HOUSE

PAYMENT BY INSTALMENT,

(By Telegraph—Per Press Association)

WELLINGTON, May 4. In the House of Representatives yesterday, the Fruit Control Amendma.it , Bill, providing for the ve-iiiciusion of itio Otago district in the fruit expor: control scheme was pat -through ml stages and pan ed. .. The Trade l . Agreement (New Zealand with Canada Ratifications) Bill was put through the /remaining stages and passed. I’he Land and Income Tax (annual) Bill was introduced 'by Governor-Gen-eral's message. Moving the .second reading, Hon. AV. Downie. Stewart said that one reason for re-introducing the measure during the present > essiun was Ito enable assesments 'to be prepared early, so that those who desired to do so, could pay their taxation by instalments. There would be provision in the Finance Bill to be. brought down to-morrow, which would entitle people paying their income tax in advance to be credited with interest for the period during which the Government 'had the use of their money. The Bid u't present before the Hour’s was, with one sniCl -exception, a duplicate of last year’s Annual Taxing Bill. However, it was remedied pn 'the omission in connection with the. 35 1-3 per cent, super tax, which would now he payable on income from local authority and company debentures. The Leader of the Opposition (Mr H. Holland), said that the Government had indicated that there were Ho be drastic increases in taxation, but after inducing civil servants’ La lanes and pensions, it was now going to allow the wealthy tax-payer to escape. He had no objection to the use of reserves to assist in the solution of the country’s,, difficulties, but as the whole community would be taxed to re-tore reserves, it was not fair 'that their use ' should merely obviate the- increase in, ' taxation. The proposal to utilise reserves should have been taken into con- ' Isirle/atioii when the reductions in ' wages and pensions wait before ' the House.

T-he Premier, Mr C. W. Forbes, pointed -out that the. increased taxation meant reducing the funds, on which the extension of industry and employment depended. Mr W. E. Barnard (Lab., Napier) : Doesn't that also depend on wages?

■Mr Forbes -said that it was in the interests of the country to avoid further taxation. The Minister of Finance at nq time- had .stated that he would increase the. income tax. He was being criticised because a particular section of the community Iliad been called upon ! :o pay its share in a manner different -from that which the Labour party favoured, Mr Forbes declared that no section of the community was escaping ; ts fair -share of the burden. There had been -an indication that a sales tax would be imposed, but as this tax would have affected everybody, including the workers, the Labour party should offer its congratulations to the Minister of Finance that lie was able to avoid the imposition -of a sales tax. The Bill wa's passed and the House rose at 12.35 p.m.

THE LEGISLATIVE COUNCIL

NATIONAL EXPENDITURE BILL

WELLINGTON, May 4

Tn the Legislative Council the Hon. Sjr J. Par, moving the commital of tlie National Expenditure Adjustment Bill, said that the Council was constitutionally precluded from amending the measure in respect to salary and pension cuts, and interests received, affecting the Crown 'only. The alteration, made by the Statutes Revision Committee, was in the direction of extending the benefit of the twenty per rent, reduction to persons who might have incurred obligations under annuities. The Bill was committed and short title agreed to, the Council rising at 11 p.m.