FINANCIAL STATEMENT.

Manawatu Herald, Volume XLVIII, Issue 3674, 4 August 1927, Page 2

FINANCIAL STATEMENT.

NO TAX REDUCTIONS,

In the House on Tuesday evening the Minister of Finance read the Financial Statement. While indicating that he hopes this year to effect some improvement in the graduation of the income tax with a view to remedying anomalies the Minister does not holdi out any immediate hope of a reduction in taxation. The Minister says that when a reduction is feasible the removal of anomalies will enable it to be made on an equitable and scientific basis. In regard'to the basis of company taxation, Mr Stewart said data showed that a complete change would involve a loss of revenue of about £1,000,000 per annum, and for fiscal reasons the proposal could not be entertained at present. Falling imports and consequent lessened Customs revenue, and a probability of various adverse factors causing a reduction in land and income-tax receipt., make it difficult to give a close estimate, but the Minister forecasts the revenue for the current financial year at £24,070,900, and the expenditure at £24,498,549, leaving for the Supplementary Estimates £178,351. The effect of the revision of the Tariff and adjustment of the income-tax schedule are problematical, and will not be known until the end of the year, and while the Minister says that the Dominion.is gradually freeing itself from its present temporary difficulties and steadily working towards more favourable conditions, he emphasises that a strict watch will require to be kept on all fresh claims for expenditure if the finances are to be kept on a satisfactory basis.