THE COUNTRY’S TAXATION

Manawatu Herald, Volume XLIV, Issue 2435, 30 May 1922, Page 3

THE COUNTRY’S TAXATION

A REDUCTION FORECASTED. STATEMENT BY PRIME MINISTER.. Christchurch, Yesterday. In forecasting a possible reduction in taxation, and also in railway and postal charges, the Prime Minister stated yesterday that a shrinkage of two millions in the income tax revenue was certain this year, otherwise reductions could have been made in a number of directions. “The outlook to-day is very much better than it was last November,” said Mr Massey to a deputation of horse-owners who had asked for reduction in taxation. “We have not got to the length of reducing taxation to any extent; but the time will come, and must come, when a reduction will be made. The fares and freights on railways, and the postal charges are pressing heavily on the people, and nothing would do more good than a reduction. I cannot say when it will take place, hut as soon as it is possible to do it a reduction will be made. About a fortnight ago I discussed a number of matters connected with the railways with the Minister of Railways, and there was very little difference of opinion between us. He told me that he and the General Manager were going through the general tariff, and . expected within a few weeks to submit proposals to Cabinet. While I am not certain of an- material reduction so far as racehorse owners are concerned, I expect something will be done to make it easier for the people who are genuine sports. That is about, all I can toll you. It is no use my committing the Government to something they will not be able to do. The trade of the country has improved,” Mr Massey added, “and there is a better feeling in the town and country, ’hut what has taken place up to the present has not yet reached the finance of the country. That is to say, we as a Government have not benefited hv it. That has got to come there is no doubt, hui as a result of last year’s operations there will he a drop of two millions in the income tax this year. Tf it were not for that drop, which is certain, to take place, I should he able to make reductions in quite a number of directions, hut until that lime is passed it won't for me to do very much. I shall know better how we stand in August. 1 shall then he able I > make •a. .statement in Parliament as to what, it is possible to do. But the people of the country slant'd contribute to I lie revenue of the country in proportion to their ability o pay and any legislation that is brought down this session will carry out that principle. I hope t > see no class in this country unduly penalised. Everyone will share and share alike.”