LAND AND INCOME TAXES.

Manawatu Herald, Volume XLIV, Issue 2495, 19 October 1922, Page 1

LAND AND INCOME TAXES.

FURTHER DEBATE IN PARLIAMENT

WELLINGTON, Oct. 16. The House of Representatives to-night went into committee to consider clause four of the Land and Income Tax Amendment Bill, which had been referred to the Native Affairs Committee ns it dealt with taxation on Native land. The Hon. Ngata expressed the hope fruit the Premier would soon be able to make further concessions to the Natives. Mr Massey said he might do so but it was impossible at present. As a matter of fact, the whole of the Land and Income Tax Act required overhauling, but it could not all bo done at once. They had made a good start this year and he hoped to continue tho good work. The clause was passed. In the schedule Mr Mitchell moved that in no case should fho taxation on companies exceed 5s in the pound. Mr Massey resisted the amendment, lie said he could not possibly accept it. It would double the taxation on all incomes between £3OO and £2OOO, and if it was carried he could not carry on and must drop the bill. Mr Wilford said he believed in a thorough readjustment of the company taxation. It must come, but he doubted if it could be done by a simple resolution such as that moved by Mr Mitchell. It must bo accompanied by some alternative, and in tho absence of that alternative he regretted that he. was unable to support the amendment. . 'Mr Sidey asked tho Premier if he could say what sum in revenue would be lost if the amendment was carried. Mr Massey said he could not say exactly what sum would be lost, but he did know that no one was so well able to pay the income tax as the companies. They passed the tax on, and that was one reason why he wanted to sec a reduction in taxation so that the public might get the benefit. Mr Mitchell said he felt that the Premier could not give effect to this amendment this year. He had brought it forward to force" on the question of the readjustment of taxation, especially with regard to those companies capable of employing labour and increasing industry. . The amendment was negatived on Hit voices and the bill was reported without amendment. , On the third reading the lion. Ngata and Mr Lysnar dealt at length with the effect of taxation on the Maori blocks on the East Coast. . Mr Field protested against the taxation of flax as land. . Mr Holland said he considered company taxation to be utterly unscientific, but it could not be dispensed with until they had something to put in its place. Mr Massey, in reply, characterised as unscientific the amendments moved in cmnmitiee by Messrs Holland and MeCallum to limit Iho reduction in the super-tax to taxpayers with land of less value than £IO,OOO and £20,000. lie reviewed the recommendations of the taxation commit ice to show that- the Governmenl was doing a great deal to give effect- to them. He favoured a reduction in taxation at the earliest moment, but lie could not nflord to lose revenue, and if he had to look mother directions for the money it would hate to ,omo from a reduction in the exemptions, and that he did not wish to do. The piospects. however, were looking lief lor, and ho believed a reduction would conic and with it reduction in the cost of bun . The bill was read the third tune and passed.