TAXATION LAW

Wairarapa Times-Age, 13 September 1938, Page 5

TAXATION LAW

COMPLETE CONSOLIDATION NEXT YEAR IF GOVERNMENT GETS BACK. STATEMENT BY MINISTER OF FINANCE. (By Telegraph—Press Association.) WELLINGTON, This Day. An indication that a complete consolidation of the land and income taxation could be expected next year if the Government was returned to power, was given by the Minister of. Finance, the Hon W. Nash, during his reply to the second reading debate on the Land and Income Tax (Annual) Bill in the House of Representatives last night. Mr Nash said that some of the most competent officers of the Government had been engaged on the subject, but the social security legislation had interfered with their work. A number of anomalies had appeared in the land tax legislation and many representations had been received by the Government. Where there was injustice, relief could be expected before the end of the year. It should be remembered that for taxation purposes, where a case was under consideration, if an adjustment was recommended at the end of the year, relief could be claimed when returns of land or income tax were made at the beginning of the year. INCOMES & INCREASES. There had never been more absurd statements about taxation, said Mr Nash, than those made recently in the House. The increase of £10,000,000 in the receipts from taxation were not due to a rise in the incidence of taxation, but to the rise in the total income of the people. The income of the people had, from 1935 to 1938, increased by £33,000,000. The yield from income taxation had increased by £7,000,000 but of that only £1,000,000 was represented by increased incidence of taxation. , "The test is the ability of the individual to pay,” said Mr Nash. “The ability to pay has never been greater than it is today. It is not the amount of a tax a person has to pay that counts, but the amount he has left.” Mr H. G. Dickie (Opposition, Patea): “You want everybody down to the same level.” Mr Nash: “Nqt at all, but- that is the sort of argument that has ■ been used all the time.” •’ , Mr W. J. Polson (Opposition, Stratford): “AU the same, you expect this' year an increased return from income tax, and in the Budget you estimate that revenue will be £ 214,000 less.” REDUCTION IN IMPORTS. It was possible, said Mr Nash, for the returns from taxation to go down without the income of the people going down. This year it was expected that , although the incomes of the people internally would be greater, the return- from Customs duties would be smaller because imports, which had been abnormal, would be smaller. Mr Polson: “You take credit for the higher price of dairy produce, but will you take the discredit for the fall in the price of wool?” Mr Nash: “We have not done anything to control the price of wool but we have organised the marketing of dairy produce.” . • , The Bill was put through the committee stages, read a third time, and passed.