The Manawatu Herald. Saturday, August 28, 1915. THE BUDGET.

Manawatu Herald, Volume XXXVII, Issue 1441, 28 August 1915, Page 2

The Manawatu Herald. Saturday, August 28, 1915. THE BUDGET.

Sir Joseph Ward, Minister for Finance, produced the National Government’s Budget, a very voluminous document, setting out the financial position of the Dominion and what is of greater importance, the proposed taxation for the purpose of meeting the Dominion’s share of war expenditure. The details will lake some lime to arrange, but it appears that the extra taxation to meet the two millions odd required, is placed upon the shoulders of those best able to hear it. In some quarters surprise is expressed that the six thousand odd large landholders in this country have been let down so lightly. Increases of the land and income tax will provide nearly a third of the total amount required. There is to be an increase of 50 per cent, in the graduated land-tax. The in-come-tax is to be increased by 33 1-3 per cent, all round, and there is also to be an increase in the graduated rates. The net result of these changes will be that this tax will range from 8d on the lower incomes, the exemption of remaining unchanged, to 2s 8d on the higher ones. Of special importance under this head is the proposal that income derived from land shall be no longer exempt from income-tax. The exemption was for the benefit of the farmer, who was supposed to be contributing sufficiently through the land-tax, but in view of the unexampled prosperity of the producing industries as the result of the war, the men who are thriving on what is a calamity or a loss to others should not grudge this small levy on their extra profits during the period of the war. The postal and telegraph services

and the railways will each bear large parts of the increased taxation, the former and the latter The Customs will only contribute j£2Hn,i)l)n and the remainder of the required money will be taken by smaller impositions in a variety of directions, most of which cannot be objected to. On the whole, the war taxation is equitably distributed, and in view of the country’s prosperity, will not press heavily upon any section.