BUDGET SURVEY

Rotorua Morning Post, Volume 2, Issue 439, 25 January 1933, Page 5

BUDGET SURVEY

("Post" Special Commissioner.)

INCREASED TAXATION TO MAINTAIN REVENUE EQUILIBRIUM FEARS OF SALES TAX

Wellington, Tuesday. One of the most important statements to be made to the House by the Prime Minister (Mr. Forbes) this session will be the survey of the budgetary situation. This will deal with the general finaneial position, and also the effect on budget equilibrium of the inereased exchange rate. The question of taxation, in regard to which the last Budget waa silent, is also certain to he broached in the course of his analysis. When interviewed to-day, Mr. Forbes declined to indicate whether the Government had the question of increasing taxation under review,„ although he was prepared to state there would be no increase in unemployment taxation. In the lobbies, however, there is lively anticipation that the taxpayer will shortly hear something which in his opinion will be to his disadvantage, and in this connection gossip is eentreing around the possibility of Cabinet deciding to introduce a saies tax, under review primarily as one of the possible ways of providing revenue to bridge the gap. The saies tax proposal was abandoned in the brief emergency session of 1932, when th.%, then Finance Minister (Mr. Downie Stewart) employed in its place the reserve hypothecation expedient and gave taxpayers a much needed breathing space. It is understood that had the saies tax p.Toposal been adopted provision would have been made for placing on an exemptions schedule all foodstuffs and other necessaries, and it is said that the same arrangement will hold good if this new impost is to make its debut this year. As the issue is still in the speculation stage the likely rate of the tax has not entered the field of surmise.