INCIDENCE OF TAXATION.

Manawatu Herald, Volume XLV, Issue 2602, 5 July 1923, Page 3

INCIDENCE OF TAXATION.

REDUCTION TO BE MAIM

GETTING BACK '4O PRE-WAR CONDITIONS.

Wellington, July 4. ‘■'lt lias always been recognised by me..’ stated Hie Prime Minister when delivering the Financial Statement in the House of Representatives lasi night. “Mini (he retention of the admittedly high taxation necessitated by the war is pressing on enterprise and retarding development, and is one of the factors in itie increased cost of living. Financial pressure, however, lias been siieli that I have not been able to afford relief to anything like the extent I believe to he necessary, allhough last, year laud and in-come-tax concessions amounting io £929.100 were granted. With the improvement that has taken place 1 am pleased to announce dial in conformity with the policy of the Government further substantial reductions will be made this year, including ihe remission of income-fax on land which was imposed for war purposes and in addition to the ordinary land-tax. Alter muking allowance for the increased expenditure on account, of pensions, subsidies, interest on public debt, as well as for the increases in salaries and wages due to the increased cost of living, it is intended to get back as soon as possible to (he rates of taxation which were in operation prior to the war. Conditions have altered to such an extent that the whole system of taxation .requires revision. T am considering legislation which is designed to secure a move equitable distribution of the burden, but in view of the necessities of the situation T have thought it better to concentrate on reductions ilia I will give immediate relief and at the same time afford recognition of the economic principle /lull each taxpaver should contribute according to bis ability Considerable adjustment lias, however ‘ been taking place, and the taxation nm- bead of the population, including Maoris, has fallen from £l7 14s 4d in 1921 to £ll 17s Bil at the 31st March, 1923.”