FINANCE BILL

Taranaki Daily News, 15 December 1921, Page 5

FINANCE BILL

REBATE ON INCOME-TAX. FIVE PER CENT. CONCESSION. HIGHER AMUSEMENT TAX. HEAVIER TAX ON RACING. By Telegraph—Press Association. Wellington, Last Night. The Finance Bill was introduced in the House to-night by Governor-Gen-eral’s message. The Premier explained, that the first part of the Bill dealt with certain amendments in, connection with land and income tax,, which were more or less of a technical nature. A rebate of five per cent, to payers of income tax, which was due next February,, was provided for if the tax was paid before a given date. He found he could not make this rebate ten per cent., as in the case of land tax, as if availed of in all cases the rebate would, mean a concession of about £300,000. Where income tax was paid in advance the payer would be allowed the same rate of interest as paid by the Post Office Savings Bank. The amusement tax was increased, and would be levied on a basis of one ponny for every sixpence. In reply to Mr. T. M. Wilford (Leader of the Opposition), he said he had considered the matter carefully and he could not see his way to graduate the tax, charging a higher rate on the more expensive seats and a lower rate on the cheaper seats. He preferred a flat rate as provided in the Bill. Mr. Mabsey said it had also been decided to endeavor to get more out of racing clubs and two forms of taxes were provided for—one of five per cent, on dividends and teq per cent, on stakes. He did not think the new proposals would detrimentally affect country clubs. He understood the racing people were prepared to accept these proposals provided 1 ’ / were reviewed in two years’ time. ’ • excise duty on beer and tobacco, as agreed upon when the Customs tariff was adopted, were provided for in the Bill. A new clause would be drafted ensuring the ear-marking of revenue derived from the tyre tax for main roads. That provision was not in the Bill at present, but he had. promised it would be inserted, and it would be brought down later on.

In reply to Mr. Wilford. the Premier said he expected roughly to receive £200,000 from the amusement tax and a similar amount from racing clubs. Mr. Wilford: That is about £400,000. Mr. Massey: Yes. Mr. Wilford: And you are giving £300,000 away.

Mr. Massey: We are not giving it away, but what we are doing is distributing taxation. I am satisfied people ean not go on paying the heavy income tax they have been paying during the war years. Mr. H. E. Holland (Leader of the Labor Party) indicated that so far as the rebate on income tax and the increase .in the amusement tax was concerned there were no forms of the House that the Labor Party would not exhaust in order, to oppose them. Mr. Massey: Very well, then, I will keep the hon. gentleman and his Labor Party here for the next six months. Mr. Holland: We are prepared to Stay till Parliament dissolves. The Bill was read, a first time.