LAND TAX.

Taranaki Daily News, 2 November 1921, Page 5

LAND TAX.

PROPOSAL FOR REBATE. TEN PER CENT. SUGGESTED. HELPING THE PRODUCERS. A rebate of ten per cent, on land tax is involved in an amendment to the Finance Act introduced in the House last night. The tax is due on Monday, and the proposed rebate will be allowed if payment is made by the 28th instant. At present the concession does not apply to income tax. By Telegraph—Press Association. Wellington, Last Night. An amendment to the Finance Act, in so far a* it relates to the payment of land tax, w r as introduced in the 'House to-day by Governor-General’s message. Mr. Massey explained that the Bill established the principle of a rebate in connection with the payment of land tax. This principal had been found highly successful in connection with Crown land rents. Everyone knew that payers of land tax had of late made no profits and many suffered heavy losses. The land tax was due on Monday and he proposed that if payment was made by the 28th inst. a rebate of ten per cent, would be allowed. That might mean a loss to the State of £170,000. but he thought it highly probable it would result in a gain to the State. The concession did not. at present apply to income tax, which was not due ti.l February. Before that time he would have a better idea of what the financial position would be. Mr. E. Kellett (Dunedin North) commented that the concession was all in the interests of the man who could pay it, and it would not help in the least the man who could not pay. Mr. E. Newman (Manavvatu) said the concession would be greatly appreciated in the country districts. He was convinced the Government would find a great deal of money was paid by the 28th which they would not otherwise get. Mr. F. N. Bartram (Grey Lynn) said evidently the Government was in need of money, and this was a cash bonus to get it, but it would not help the poor man. Mr. A. D. McLead (Wairarapa) contended the concession would encourage banks and loans companies to finance those in poor circumstances. Mr. W. A. Veitch (Wanganui) said that under the Bill landowners were going to benefit at the expense of all other sections of the community. He suggested that those owning over a certain area of land should not benefit by the concession. After further discussion by members Mr. Massey said the Bill would be sympathetically received by the people in the country. Those in large centres, as well as those in the country districts, would appreciate it, as it had been brought home to most people that the stability of the country depended on the producers. He would be glad to take into consideration the suggestions made, but he could not forget he was responsible for the finances of the country. He would have been glad to do away with the super-tax. but that was not possible, especially as it was necessary tn act quickly. One point that had not been mentioned was the way in which land tax had increased. Before the war it amounted to £€>oo,ooo, while today it totalled £1,700.000, and in some cases land which was not producing more was paying more.

Mr. G. Witty (Riccarton): “The valu ations have increased.”

Mr. Massey: “Yes, but the land tax has increased very seriously.” Rep 1 / ing to the criticism that the Bill would specially benefit rich men. Mr. Massey characterised it as nonsense. No one more disliked class legislation than he. He reminded the House that last year legislation had been passed which increased the land tax with the object of bursting up big estates. That increase was very serious and the big landowners were not going to benefit to any great extent by this concession. The Bill was introduced and read a first time.