EXCESS PROFITS

Waikato Times, Volume 127, Issue 21205, 30 August 1940, Page 6

EXCESS PROFITS

TAXATION PROPOSALS PARLIAMENT TO LEGISLATE GOVERNMENT’S INTENTIONS (By Telegraph.—Press Association) WELLINGTON, Friday Moving the second reading of the Finance Bill No. 2 in the House of Representatives today, the Minister of Finance, the Hon. W. Nash, was questioned by members of the Opposition regarding the imposition of the excess profits tax. Mr Nash said the matter would be brought before the House, and the Government would announce its intentions and principles governing this taxation as soon as possible. The Rt. Hon. J. G. Coates (Opposition—Kaipara) congratulated the Minister on his statement. It would be much more satisfactory to bring down a bill dealing with the subject, as was proposed by the Minister, said Mr Coates. He understood that the principles of the proposed tax differed from those of the excess profits tax of the last war. Mr Nash: The tax in the last war was in force for only a year. Mr Coates: I hope it is not intended to carry it on after the war this time. Mr Nash: Only on those who make profits out of the war, that’s all. Suggestion For Companies The Leader of the Opposition, the Hon. A. Hamilton, suggested that the excess profits tax be dealt with early, as farmers, who were asked to produce more, were wondering whether the Government would take their extra profit. Taxation was getting so high that it forced companies to take as much money on deposit and to use as much credit as possible. This was an unsound system of financing. Mr Hamilton said he considered companies should be allowed to pay a dividend on share capital at a certain figure, and that anything beyond should be regarded as profit. The Government should not call interest on share capital profit. Mr Nash: It has always been so. Mr Hamilton added that the position was not so bad when taxation was low, but now it was 12s 6d in the £.