DOMINION FINANCE.

Taranaki Daily News, 29 May 1922, Page 4

DOMINION FINANCE.

THE POSITION IMPROVED. REDUCTION OF TAXATION. LOWERING OTHER CHARGES. By Telegraph.—Press Association. Christchurch, May 27. In forecasting a possible reduction in taxation, and also in railway and postal charges, the Prime Minister stated today that a shrinkage of two millions in income-tax revenue was certain this year, otherwise reductions could have been made in a number of directions. “The outlook to-day is very ifiuch better than it was last November,” said Mr. Massey to a deputation of houseowners who had asked for reduced taxation. “We have not got to the length of reducing taxation to any extent, but the time will come, and must come, when a reduction will be made. Fares and freights on the railways, and the postal charges are pressing heavily on the people, and nothing would do more good than a reduction. I cannot say when it will take place, but, a« soon as it is possible to do it, a reduction will bfl made. “About a fortnight ago I discussed a number of matters connected with the railways with the Minister of Railways, and there was very little difference of opinion between us. He told me that ho and the general manager were going through the general tariff, and expected within a few weeks to submit proposals to the Cabinet. While I am not certain of any material reduction as far as race-, horse owners are concerned, I expect something will be done to make it "easier for the people, who are the genuine sports. That is about all I can tall you. It is no use my committing the Government to something they will not be able to do.

“The trade of the country has inn proved,” Mr. Massey added, “and there is a better feeling in town and country, but what has taken place up to the present has not yet reached the finance of the country. That is to say, we, as a Government, have not benefited by it. That it has got to come there is no doubt, but as the result of last year’s operations there will be a drop of two millions in the income-tax this year. If it were not for that drop, which is certain to take place, I would to able to make reductions in quite a number of directions, but until that time is passed it won t be possible for me to do very much. I will know better how we stand by August. I shall then be able to make a statement in Parliament as to what it is possible to do, but the people should contribute to the revenue of the countryin proportion to their ability to pay, and any legislation brought down this session, will carry out that principle. I hope to see no class in this country unduly penalised. Everyone will share and share alike.”