PRODUCTION TAXATION.

Putaruru Press, Volume VII, Issue 294, 27 June 1929, Page 4

PRODUCTION TAXATION.

In his references to means of increasing primary production SiiGeorge Elliot opened up a big question. In commenting upon his suggestions we understand that he could not in the time present more than an outline of his ideas. The comment must therefore be read with due allowance for much more that might be said on both sides. Especially does this apply to the proposal that the Government should consider exempting from taxation for a period of years certain second- , class unimproved lands at present | lying idle. The argument for this concession was briefly stated by the speaker as follows: The imposition of the graduated land tax has limited the acquisition by individuals or companies of large blocks of unimproved areas. There are in New Zealand great blocks of unimproved lands, areas that, under present conditions, no private individual or group of individuals can handle with any hope of financial success. To support this argument, however, it is necessary that there should be a statement of the costs which make such lands unprofitable to work. If the lands are fairly valued on a production basis the graduated land tax (which is im- 1 posed on value, not on area) should not be an obstacle to development. Land which is really worth less, or nearly so, in its unimproved condition, should be liable for little or no taxation. The exemption would not be of such value to the pioneer improver as say an improvement in transport methods or the provision of capital at a low rate. Moreover, land tax exemption must necessarily involve great difficulties which can-

not be overcome by legislative provisions. There is, for example, the difficulty of determining hew long the exemption should continue, and when the tax should be reimposed to hasten the subdivision of the improved land. W ellington Evening Post.