ESTIMATED YIELD

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

ESTIMATED YIELD

£2,408,000 TO MARCH 31 SUM TO BE BORROWED HUGE COST LIKELY NEXT YEAR (By Telegraph.—Special to Times) WELLINGTON, Tuesday Explaining the extra war taxation measures in the House of Representatives tonight, the Minister of Finance, the Hon. W. Nash, said the beer duty was to be increased from Is 9d to 2s a gallon, and there would be a 25 per cent mcrease in the duty on tobacco. “The gold duty is also to be increased by the payment to the State of 75 per cent of the increase in the price between August 24 and the price on the day on which it is exported,” said Mr Nash. “The remaining 25 per cent of the addition will remain with the person who wins the gold.

“The sterling price of gold on August 24 was l*Bs and it is now lbOs. The price in New Zealand currency on August 24 was £9 5s Bd, and as long as the price remains above that, threequarters of the difference will go into the War Expenses Account, the remaining onequarter being retained by the person who procured it.

“The duty on wines and spirits will be increased by 15 per cent, corresponding with the increase in the beer duty,” the Minister added. “The increase duty on tobacco will mean an extra 3d per 2oz. tin and another Id a packet for a packet of 10 cigarettes.

“It is also proposed to increase the income tax by 15 per cent, and death, gift and succession duties by 33 1-3 per cent, operating as from today, September 26. “The higher income tax applies to last year’s income. It is no use getting the money next year to prosecute the war this year.”

The proceeds of all the increased taxes would be paid into the War Expenses Account, which would embrace all funds needed for the prosecution of the war and would provide all payments for war purposes, the Minister said. The fund would receive the unexpended portion of the sums, totalling £3,200,000, already voted for the Army, Navy and Air Force, as well as the unexpended portion of the Public Works vote bearing on defence. Estimated Yield The added death duties, income tax and Customs duties, as well as an extra Id for every letter posted after October 1 next, were expected to bring in £2,406,000 for the balance of the year. There would also be increased charges for other postal services, but these would be required to balance the normal accounts of that department. Estimated receipts on the higher scale for a full year were given by Mr Nash as follows: Death duties £700,000 Income tax 1,440,000 postage 000.000 Beer duty *uo,ooo Tobacco duty 540,000 Gold export duty .. 220,000 Wines and spirits .. 120,000 Total £3,726,000 Obtaining the Balance The Minister then stated how it .. was proposed to raise the extra sums required to make up the £9,750,000 needed for the remainder of * the current financial year. Amounts already voted for defence totalled £3,200,000 and the new taxa-

tion would bring £2,408,000, leaving a balance of £4,142,000 to be found. It was proposed to see if some could be raised by loan and in addition where it was necessary all the money required for war purposes would be obtained from the Reserve Bank. There would be an amendment to the Reserve Bank Act later on to enable that to be done, as the Dominion could not afford to be short of money at any time during the war. “We have not decided what we will need by way of loan,” the Minister said. “There is another provision in the War Expenses Bill, which will be introduced later, for money required overseas. We take power to borrow from the United Kingdom Government without the usual security any money needed for any of our men overseas. In Dominion Only “The items I have outlined—particularly the £9,750,000 —cover expenditure in New Zealand only, and we have made no estimate of what it may cost if men have to go overseas. These are payments for equipment, the building of camps, the provision of uniforms and the establishjnent and equipping of five Air Force training grounds, so that we can give our people the maximum of security. “I think it may cost us £20,000,000 or £30,000,000 next year if the present circumstances continue,” Mr Nash added. “I am sorry we have to talk of long periods, but whatever it costs we have to find it and go right on with it to the end.” Mr S. G. Holland (Opposition— Christchurch North): Will there be any economies in other directions? Mr Nash: We will still keep our men as far as possible in profitable work, but the major objective is the prosecution of the war. We must produce commodities and conserve men. If we can take some of our men out of non-essential work and transfer them to industry, both primary and secondary, the Government will do that right along. All surpluses that may be left over from various sources will automatically be transferred to the War Expenses Account.” DEARER TOBACCO NEW RETAIL PRICE LIST (By Telegraph.—Press Association) WELLINGTON, Tuesday The Tobacco Trade Council announces that the increased duties and excise on tobacco and cigarettes make it apparent that prices to the public will be increased immediately by at least one penny for 10 cigarettes and threepence for two ounces of tobacco. The council states that an amendment to the fixed retail price list is in course of preparation for immediate issue to the retail trade.