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The Daily News. FRIDAY, AUGUST 31, 1917. THE FINANCE BILL.

The heavy war taxes imposed by the Finance Bill which is now before the House cannot fail to arouse more than ordinary attention, and if members of .Parliament do not give most careful consideration to these proposals they will fail in their duty to their constituents, j TU -rolongation of the war is making, | '.!•> art of the Empire, and especially the iMotherland. feel the strain more and more acutely as time advance? and this is emphasised by the extraordinary measures of taxation that have become necessary in order to carry on the war to a successful conclusion. Sir Joseph Ward has an inevitable duty to perform in meeting the enormous financial demands of the Dominion for the current year, and though on general lines his proposals are intended to adjust the burden equitably, there are details which need amendment. The land tax has a minimum of lid and a maximum of IOJd, a new feature being the imposition of fifty per cent, higher scale on absentee} owners than on resident. An absentee is defined as one who has not been personally present in the Dominion for at least one half of the period of four years immediately preceding the year of assessment. By this somewhat drastic provision absentees are evidently set down as speculators, and as such regarded as a fair target for heavy taxation. Although companies are exempted from this super tax, the penal clause extends to the individual share of an absentee therein. Against this, however, may be set off 'the very just exemption from land tax of resident shareholders whose incomes do not exceed £3OO. At the same time the objectionable feature in connection with the tax on companies is that it is double-barrelled—the company pays and the individual shareholders pay, and this must inevitably be a hardship on all those who have money invested in companies the yield 'from which provides their only source of income. It may be said that those having unearned incomes of over £3OO a year can afford this double taxation, but in the case of people of moderate means with large families to provide for, educate and give a start in life, the pinch will be felt, probably severely, in view of the greatly increased cost of all the necessaries of life and the decreased purchasing power of the sovereign, even though deductions are allowed on a sliding s£ale. Particular attention should be paid to the land tax concessions in iespect to mortgages, and it should be noted that these concessions do not apply to mortgages for the cur rent year, but to those in existence on March 3ist of the year preceding the assessment. On this basis an owner of land where the total unimproved value did not exceed £3OOO, and who about eighteen months back was able to get along 'with a mortgage of only ,£ISOO. caa claim the full deduction. o&

j £ISOO from the taxable value, but if on 'March 31, vm, lie had no mortgage, Imt owing to stress of circumstances had later been compelled to give a mortgage lor £ISOO, lie can claim no deduction at all. This seems to be unjust and oven harsh, unless in such cases as where mortgages have been raised at a cheap rate of interest and the money lent out at a higher percentage. In common justice the exemption should lie allowed on mortgages existing either at the 31st Marsh of the year of assessment or on the first of January in the " same year. It is, however, pleasing to note that the Minister has redeemed his promise to give favorable consideration to sports grounds, with the result that such grounds (other than those used for racing or for profit) are exempted from one half the tax, this exemption being very properly extended to land held for religious, charitablo or educational purposes. Another satisfactory feature is that special exemption is provided in the case of those whose total income from the land assessed does not exceed £2OO, ami the further concession in the case of widows with children dependent on them. It is also right,and proper that native land held by other than the owners or their trustees should be called upon to contribute half rates and that Europeans having an interest in native land shall pay the tax in full, except that leaseholders shall not be deemed to ■be owners of the feo simple. It may be taken for granted that the imposition of an additional penny per gallon to the beer duty will receive universal approval, except from those who desire to see the commodity taxed out of existence. The increase jn the old a-gc pensions by five shilling a week should also meet with approval, but on the amusements tax- there is likely to be a divergence of opinion, though it is so graduated that for the ordinary run of entertainments and amusements the payment of an extra penny is all that is demanded up to an admission price of 2s Cd, and sixpence will cover the tax on a charge of 12 s 6d, .while up to sixpence there is no tax. The' amount raised from this source is likely, to be so small that it is surprising the Treasurer has gone on with the scheme. There are other provisions in the -Bill worthy of comment, and if opportunity allows we may again return to the' subject. Meanwhile there is likely to be considerable debate on the Bill, but in the main its provisions arc likely to meet with acceptance.

Permanent link to this item
Hononga pūmau ki tēnei tūemi

https://paperspast.natlib.govt.nz/newspapers/TDN19170831.2.14

Bibliographic details
Ngā taipitopito pukapuka

Taranaki Daily News, 31 August 1917, Page 4

Word count
Tapeke kupu
935

The Daily News. FRIDAY, AUGUST 31, 1917. THE FINANCE BILL. Taranaki Daily News, 31 August 1917, Page 4

The Daily News. FRIDAY, AUGUST 31, 1917. THE FINANCE BILL. Taranaki Daily News, 31 August 1917, Page 4

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