AMUSEMENT-TAX MODIFIED

Sun (Auckland), Volume IV, Issue 1052, 16 August 1930, Page 1

AMUSEMENT-TAX MODIFIED

LEVY ON 1/- TICKETS LIFTED PROVISIONS OF FINANCE BILL THE SUN’S Parliamentary Reporter

PARLIAMENT BLDGS., Friday. ESTIMATED to produce £450,000 in revenue, the Finance Bill was introduced this evening in the House by the Minister of Lands, the Hon. E. A. Ransom, in the absence of the Minister of Finance, the Hon. G. W. Forbes, and read a first time. ‘ The major alteration from the Budget proposals was the removal of the amusement-tax on tickets below Is 6d. This met with Labour approval. The second reading of the Bill will be taken on Monday.

The Bill, said Mr. Ransom, was to givo effect to the taxation proposals contained in the Budget, other than those relating to customs duties and land and income-tax. The former had been already passed and the latter would be contained in a. separate Bill. The Bill was divided into six parts. The first dealt with the stamp duty and provided for an increase in the bank note duty, the totalisator duties and a 10 per cent, increase in stamp duties generally other than those paid by mesns of adhesive stamps. All these conformed to the proposals announced in the Budget. The second part, dealing with death duties, provided for a 10 per cent., increase in estate duties in the case of estates with a final balance of over £IOO,OOO and imposed a gift duty of 2J per cent, on gifts valued at between £SOO and £I,OOO.

The third part increased the scale of the amusement-tax. The Budget proposal had been slightly varied in that under the Bill no tax was to be imposed on admission prices below Is 6d. The loss of revenue on this concession was to be- made up by increasing by Id the scale of amusement tax on admission prices in excess of 3s Gd. The new scale of the tax would be Is 6d to 2s, 2d; 2s. 3d; 3s, 4d; 3s sd. sd; and over 3s Gd, .’d, additional for every shilling. The Budget proposal did not involve any increase on the higher admission prices. HIGHWAYS FUNDS

The fourth part gave effect to the main highways proposals set out in the Budget. Grants to the highways account from the Consolidated Fund and Public Works Fund were to be cancelled and the charge for the subsidy on rates to local authorities was to bp transferred to the highways revenue fund. Provision was made for the payment of interest ion the transfer of capital from the Public Works Fund. To provide for those additional liabilities revenue from the additional petrol-tax would go to the highways revenue fund. Any surplus revenue from the twopence increase in the tax after deducting these liabilities was to be expended on backblook roads. This year, however, being one for revenue purposes of only eight months there would be nothing available for the latter purpose. To the Header of the Opposition, the Right Hon. J. G. Coates, Mr. Ransom said a schedule of roads would be prepared and submitted to Parliament with the estimates of the Main Highways Board. The fifth part of the Bill dealt with the film hire tax outlined in the Budget proposals, and would be based upon the nearest approach to the ad valorem customs-tax on sound picture films. The value of a film to picture exhibitors would be computed after

ordinary taxation such as income-tax and the expense of exhibiting in New Zealand had been deducted. Upon this net value, a duty of 10 per cent, on British films and 25 per cent. on foreign films would be imposed. SHAREBROKERS’ FEES The sixth part concerned the miscellaneous taxation provided for in the Budget. There was an increase in the licence fees paid by sharebrokers. The Budget proposal had been slightly varied in that if more than one member of a firm of stockbrokers in one town were licensed, the renewal fee was to be £5 for the first partner, and £1 for every other partner. Provision was also made for the abolition of the Band Assurance Fund, and the crediting of its moneys to the Consolidated Fund. Of the amount so credited, £25,000 was to be credited to the deposit account, and held for five years to meet possible claims under the Band Transfer Act, and the balance, of approximately £60,000, was to augment the revenue for the year. Finally, the necessary legislative provision was made to enable a further £30,000 interest on reparation moneys to be paid by the Public TrUste© to the credit of the Consolidated Fund. FILM TAX DETAILS Mr. Coates said he considered some of the alterations were a vast improvement on the original proposals. He asked if accounts were to be kept of the earning power of films leased out, and a return made by the film exchanges. Was the tax one of 10 per cent, on the gross takings? Mr. Ransom: After allowing for certain deductions.

Mr. Coates: The tax is 10 per "cent, after the total expenses are arrived at? Mr. Ransom: Yes. Mr. Coates: There are no allowances for expenses outside the country?

Mr. Ransom: No. Mr. Coates: The Band Assurance Fund is continued as in the past? Mr. Ransom: It will go on for the next five years, and anything over £25,000 will go to the Consolidated Fund. After five years the Consolidated Fund will meet any claims. Mr. Ransom then explained that the film tax would be on the gross rents of films after the costs of distribution and income-tax had been deducted. The Leader of the Babour Party, Mr. H. E. Holland, expressed pleasure at the removal of the amusement-tax on Is tickets, and said that he would reserve further expression of opinion on the Bill until Monday.