REDUCED TAXES

Rotorua Morning Post, Volume 2, Issue 338, 27 September 1932, Page 6

REDUCED TAXES

AUSTRALIAN CUSTOMS RETURN SHOWS SUBSTANTIAL INCREASE. RECORD FIGURES. Sydney, September 15. Talk of an early reduction in direct taxation in Australia does not seem to be a mere idle dream when a study is made of the Customs and excise returns. August was a record month for both since the restrietions and surcharges were first imposed in April, 1930, by the Scullin Labour Government. The chief factors in bringing about the August figures were: — Increases of £172,000 in primage, of £105,000 in excise on unmanfactured tobacco, cleared on unmanufactured; of £44,000 in excise on cigars and cigarettes; of £79,000 in import duties on apparel and attire; of £53,000 on import duties of agricultural products and groceries; of £20,000 on imports of oil, paints and varnishes (chiefly petrol) ; and of £18,000 on the excise on petrol. An examination of the August figures provides general evidence of increasing trade activities. August is not usually regarded as a heavy month' for Customs and excise revenue. The first thiee months of the financial year are usually a little lighter than the following months, although the revenue sometimes falls away again at the end of the year. The high August total accordingly indicates that unless there is a very material alteration in the position the total revenue from this source for the year will be well over £30,000,000 — considerably more than has been budgeted for. However, it was stated soon after "the Budget had been delivered that the estimates were on the conservative side, and this is eertainly being borne out by the facts. It is no wonder that many people are asking why the Federal Government was so quick with its proposals to make a cut in old age and invalid pensions for th'e pusp'ose of evening up the accounts. The additional Customs revenue already is greater than the saving effected by the pensions cut. Loan Obligations. In defending tho Budget members of the Cabinet have pointed out that no provision is made in it for the payment to Britain of the interest due on war loans. it is assumed that the concessions granted will be continued,

but if the British Government decides otherwise the Federal Government will have to provide an additional £4,000,000. It is likely that this contingency has been borne in mind, ana that Australia will he at least £4,000,000 to the good if the intsrest is not paid. Statements by the Prime Minister and others have led to the assumption that this being so the Government will not hesitate to reduoe direct taxation. When the Premiers meet again in a few weeks' time a discussion on taxation is likely to be initiated by the Commonwealth, and it is probable that the States will be asked to co-aperate with' the Federal Government in devising a scheme that will give immediate relief to industry. The final decision — strilce' or no stribe — will rest with the All Australian Union Conference to he held in Melbourne next Tuesday, and. it is by no means certain that the plans al- ' ready launched will be endorsed. A great battla between rival factions is proceeding in New South Wales, and it is even likely that the Sydney dele.gates to the All Australia Conference will oppose th'e general strike. If -that is so it can be taken for granted that there will he no general strike. It is so happened that the strike policy was favoured, the strike itself would he a .very tame affair, and onee again the rank and file of the workers would he the sufferers.