THE FINANCIAL BILL.

Manawatu Herald, Volume XXXIX, Issue 1756, 6 September 1917, Page 3

THE FINANCIAL BILL.

IM PORT ANT AMENDMENTS? \ Amendments to the Finnrifo Bill were introduced by Governor's Message in the House yesterday. They provide for (he creation of a Board of Appeal in connection with the compulsory provisions of the war loan. This Board, which will have the powers of a Royal Commission, will consist of the Au-ditor-General, the Commissioner of Taxes, the Secretary to the Treasury, and the Government Insurance Commissioner. The exemption of £25 of assessable income in respect of a child is extended fo cover any number of children under sixteen years. Protection is provided for banks which have advanced money for the purchase of war loan stock, by a provision for the issue of: certificates of lien in favour of the banks. The cigarette duty is increased to 25s (id per thousand, or 10s (id per lb. The effect of this change is to bring the extra duty approximately to the penny per packet added by retailers. Sir Joseph Ward stated the change would mean about £BO,OOO additional duty. Thirty-seven clauses of the Bill I were put through Committee during the evening. TAXATION OF MORTGAGES. Replying to references to the taxation of mortgages, Sir Joseph Ward said that if the Government was to get the required amount of revenue from Ihe laud tax it must adhere to I lie system proposed in the Bill. He could not let go of the taxation which did not really represent the taxation of debts. He had made a concession already in favour of the small men, and he was prepared to go a little further. He could not yield anything beyond his present proposal, -He would consent to extend the mortgage exemption by £1 for each £2 over £5,000 unimproved value, the exemption to disappear at £O,OOO unimproved value instead of £5,000. Tin's amendment would mean n further concession to the small men. The maximum exemption would be £1,500. if the proposal was extended to large mortgages. Then the Government would lose its revenue from the land tax. Other countries were finding it necessary to levy taxation in the way proposed in the Bill in order to get their revenue from land tax. All taxation was bound to hurt somebody. Mr Pearce protested against the tax on mortgages. It was unjust, and it was no reply to say that the Government must have money. : The revenue could be secured iji other directions. The mortgage tax was an unfair tax.