NEW ZEALAND NEWS.

Taihape Daily Times, Volume 7, Issue 290, 1 September 1915, Page 3

NEW ZEALAND NEWS.

WAR TAXATION. FARMERS' WAR PROFITS TAXED. WELLINGTON, Aug. 3e. The proposed new taxes make a sevy on the war profits on wool and meat, and a graduated land tax. A reference to that portion of the Budget proposals which is intended as a tax on war profits, and the application of the income tax to income derived from land, was made by the Prime Minister in an interview this evening. "Tlris tax, which will apply to profits made-durng the war period," said Mr. Massey, "is not intended to affect small farmers, but it is intended to reach those men who have made large •extra profits owing to the increase in prices, particularly in regard to wool and meat."

It was pointed out to Mr. Massey that it had been suggested that some allowance should be made in the case of those who have made generous subscriptions to the patriotic funds. "I cannot express any opinion upon that point," was the Pirme Minister's reply. As stated in the Budget, the Government propose to increase the land tax by an addition of 50 per cent, to the present rates of graduated tax on country lands. The details of this proposal will be set forth in an amendment of the Land and Income Tax Assessment Act. There is no precise definition in the meantime of "country lands," but the Prime Minister, in reply to a question last evening- pointed out that conntry lands are classified as "rural lands" under the Land .Act* The other classes of land mentioned in the Land Act are "town" and "suburban" lands. The Bil>, which has yet to be prepared, will, of course, make it plain which lands are to be subjected to the increased tax, and which are to be exempted. .

EXCUBSION CHARG.ES. WELLINGTON, August 30. In regard to the proposed increases in raiway charges outlined in the Budget, and the aggregate of which will be about £3(50,000, it is' suggested that the holiday excursion rates which are now ordinary single journey fares for the return journey, may be increased. The Prime Minister, however, states that nthing has been yet decided, as the matter will have to come before the Cabinet before any definite proposal is adopted. .One factor of the increasing expenditure which has to be met by the increased charges is the rise.in the price of material. The cost of canvas has increased 100 per cent., rails 12 per cent., fastenings 9 per cent., and steamer freights on rails by 102 per cent. The increases wiM have to be gazetted before they become operative. From a revenue standpoint, the Government is anxious that the revisions should come into force early and it is understood that the necessary regulations will be gazetted as soon as possible.