A YEAR OF PROSPERITY

Manawatu Herald, Volume XLVII, Issue 2914, 25 July 1925, Page 2

A YEAR OF PROSPERITY

AS SHOWN BY THE BUDGET. REMISSIONS OF TAXATION. In presenting his Budget to the House of Representatives last evening, the Minister of Finance (Hon. W. Nosworthy) expressed sincere regret that his predecessor was not there to deliver it. It was mainly due to the sound administration of the late Mr Massey, the Minister added, that the present excellent position had been attained. "The bite Right lion, gentleman,” Mr Nosworthy added, “had in the postwar years the onerous task of bringing about a considerable reduction in expenditure, and despite adverse pressure and risk of unpopularity he consistently held to a policy that has so improved this Dominion financially as compared with any other country in the world affected by the Great War. This result was achieved, moreover, while substantial remissions in taxation and charges were granted of the annual value of £3,750,000. The statement is in the main a plain review of the financial operations of the year It contains little in the way of announcements of policy. The Minister observed that he had endeavoured l<> reduce the volume of the Budget. He proposed a departure from long-estab-lished custom in observing that he considered that in future the statement should he laid on the table of the House without a formal reading.

There was only one interruption during the reading of the Budget, a chorus of “Hear, bear’s” from the Labour benches when the Minister announced that the increase of 2s (id weekly would be paid to all oldage pensioners, irrespective of property or income, and also to blind pensioners.

TAXATION REDUGTK>NS. The question of taxation and its equitable distribution lias engaged the attention of the Government with a view to further relieving industry of the burdens imposed on it by the high taxation of war years. While allotting a portion of our surplus to concessions in pensions and in other directions, further adjustments in the rates are desirable if individual initiative and energy in developing our sources and output are to be encouraged. Moreover, the investment of capital outside the Dominion is induced by high taxation. Taxation, which might have the appearance of falling direct on the person or concern taxed, does not wholly do so, but is largely borne by the consumer, and as a consequence we have a high priee-lcVel and increased cost of living. Reductions in taxation also assist in diverting capital investments from tax-free securities into trade and development purposes.

The Government has now under consideration the adoption of a new income-tax schedule following the lines discussed by the taxation commission. The proposed new schedule would reduce the maximum rate to 4.s fid from, llie present rate of 4s Hid and 2/3rds in the pound and the minimum rate from Sd to 7d i;. the jround, while between these rates all incomes would receive concessions. The present, schedule which still stands in the Act are rates up to the maximum of 7s 4d in the pound, and has been subject to percentage reductions from time to lime, would he done away with by the adoption of straight-out rales. Full details will be submitted later to Honourable Members of the House.