The Daily News. WEDNESDAY, SEPTEMBER 29, 1915. THE REVISED BUDGET.

Taranaki Daily News, 29 September 1915, Page 4

The Daily News. WEDNESDAY, SEPTEMBER 29, 1915. THE REVISED BUDGET.

Both in Xew Zealand and in the Homeland, the Ministers responsible for the national revenue and expenditure have been faced with problems of extreme difficulty. It is inevitable that when large additions have to be made to the revenue of any country that some classes will he more heavily burdened than others, and it may lie taken for granted that, in the main, the war budgets have been framed with a view to meeting the general increases in expenditure by taxation placed, as far as posible, on the shoulders of those best able to carry the additional weight, but so adjusted; that the whole community shall bear a fair share of the necessary sacrifices that the occasion demands. When Sir Joseph Ward first brought down his proposals for raising on Additional two ailiioM

wherewith to meet the abnormal expenditure of these critical times, there was at once raised a general outcry against the imposition of a duty of fourpence per gallon on petrol and kerosene, although Sir Joseph ha<l stated that he did not think any exception conld be taken to the proposal. He evidently did not realise how heavily the tax would press on the farmers, as well aa on those who have to earn their living by means of machinery driven hy petrol and kerosene. Subsequent enlightenment has led to this proposed duty being abandoned. The agitation against increasing the telephone bureau charges had also a considerable and logical backing which has been effective, for the proposed increase has been remitted, and the charge of threepence will remain as before. The proposed duty of a penny per gallon on non-alcoholic beverages has also been dropped for the present, mainly owing to difficulties in its collection. The motive underlying this proposed duty was in principle a very juslj one, in that it drew a trifling sum from many who do not contribute directly to the consolidated revenue in other ways, and it will not be surprising to find that the item finds a plaice in next year's Budget, These three remissions of proposed taxation account for '£234,000, and as the farmers' income tax proceeds had been over-estimated by £BO,OOO, the Colonial Treasurer boa had to devise means for raising '£38,006. The problem has been solved by means oi of a one per cent, primage on imports, estimated to produce £200,000; a mortgage tax to produce £65,000; a mortgagees' income tax on mortgages to produce £30,000, and an increase in the the beer duty to produce £15,000, raising the total beer duty now payable to ■between '£70,000 and £BO,OOO. Considering that the increase in the duty o» spirits was only one shilling per gallon it is somewhat surprising that a higher impost was not proposed, and it is extremely likely that no reasonable objection would hare been made to an addition of sixpence per lb on tobacco, In the Homeland, both tea and sugar have been taxed and the wage earner's there are far less able to pay the tax than those in the Dominion, but, in view of the high cost of living here it was, perhaps, as well not to increase it. The removal of the tax on motor spirit and kerosene will meet with practically general approval, whereas had it been re. tained it would have caused considerable hardship, and we congratulate the Government on its action in this respect. The imposition of one per cent primage on imports will, in a large measure, hit luxuries, but the duty should hardly »e felt, if at all, by the community generally. It is quite possible that objections against the increased burdens in connection with mortgages will be i voiced, for if the mortgagees have to pay [ additional taxation they will naturally want higher interest. At the same time, the impost may check speculation, j There is still room for heavier taxation on the large property owners should further revenue be needed. The main point to keep in view is that our important industries shall not be unduly handicapped, and in throwing over the tax on motor spirit and kerosene, the Government has recognised this view, the substituted means of raising revenue being open to little, if any, objection,