“PAY AS YOU GO”

Wairarapa Times-Age, 14 September 1943, Page 4

“PAY AS YOU GO”

; NEW INCOME TAX SCHEME EVOLVED IN BRITAIN. AFFECTING MEANTIME ONLY WEEKLY WAGE-EARNERS. (British Official Wireless.) (Received This Day, 9.55 a.m.) RUGBY. September 13. What is believed to be a workable ‘‘pay as you go” income tax scheme has been drawn up and is reported to h c ve been accepted by the Chancellor ' of the Exchequer (Sir Kingsley Wood). An announcement on the subject in the Hou c e of Commons is expected soon ' after Parliament reassembles. Sir Kingsley Wood intimated in July '■ that he favoured a change in the present system if a satisfactory scheme ■ could be evolved. The Inland Revenue authorities have been working on alternative plans, and jt is understood that the present scheme will apply to all of the 71 million manual weekly wage-earners. A ‘'forgiveness” provision may have to be included to avoid • the hardship of wage-earners being faced with new “pay as you go” deductions, plus tax already owing. The proposal is that arrears owing may be forgiven on a sliding scale, based on Ihe taxpayers’ earnings. In any case, the flow of revenue will not be inter- ■ ruptecl. Where wages, with overtime, ' fluctuate considerably, it is expected that the amounts will be averaged weekly, and adjustments made in the ' '■ form rebates or extra payments by the ■: taxpayers at the'end of. the year. It is not expected hat the scheme will

apply at present to any but manual, weekly wage-earners. It will be on tiial, and if it is successful, may be included in the Government’s post-war plans, to apply to the other five million taxpayers as well.