£9,750,000 TO BE RAISED

Waikato Times, Volume 125, Issue 20920, 27 September 1939, Page 9

£9,750,000 TO BE RAISED

INCOME TAX UP 15 PER CENT

BEER AND TOBACCO IMPOSTS

POWER TAKEN TO BORROW £10,000,000

(By Telegraph.—Special to Times)

WELLINGTON, Tuesday

Taxation and borrowing measures for the financing of New Zealand’s part in the war were announced in the House of Representatives tonight by the Minister of Finance, the Hon. W. Nash.

An extra £9,750,000 was estimated to be required to finance war activities for the remainder of the financial year (to March 31, 1940.)

The difference between the total raised, by extra taxation, plus the money already voted for defence, and the total required i 3 to be made up by the use of Reserve Bank credit and by borrowing. This total applies to expenditure in New Zealand only.

The increases in taxes and duties, together with the amount estimated to be raised by them during the current financial year, are as follows:

Income tax, increased 15 per cent, £1,440,000. Postage, surcharge of 1 d on all Dostage from October I, £250,000.

Tobacco duty, 25 per cent increase, £2 73,000. Beer duty, increase of 3d a gallon, £IOO,OOO. Wines and spirits, increase of 15 per cent, £60,000. Death, gift and succession duties, increase of 33 1-3 per cent, £ 1 75,000.

Gold export duty, £IIO,OOO In all cases, except the postal surcharge, the new rates operate immediately, the postal rate coming into force on October 1.

The Government is empowered under the War Expenses Bill, which was introduced tonight, to borrow £10,000,000, that amount including any money that might be borrowed from the Reserve Bank.