B—6

What these tax reductions mean to the individual taxpayer is illustrated by the following comparisons of residue left after direct taxes have been paid and family benefit has been added: —

In addition to the relief from direct taxes there is the considerable benefit to consumers from lower tariffs, duties, and sales tax consequent upon reductions made by the Government, and by the operation of the •General Agreement on Tariffs and Trade. The value of remissions of indirect taxes since the war amounted to £l2 million, giving a total over-all reduction in taxes of approximately £46 million per annum. Honourable members will appreciate that these reductions in taxation represent a considerable concession to taxpayers without interfering with our high social standards and needs for defence. Remission of certain amusements-tax Amusements-tax is payable in respect of certain amateur sports and amateur musical and operatic functions. From the information available the Government is satisfied that activities of this kind merit exemption from taxation. Legislation to this end will therefore be introduced during this session. Insurance against national disasters In accordance with the Government's promise last year, it is proposed to extend the cover under section 14 of the Earthquake and War Damage Act, 1944, to insured property damaged as the direct result of storm or flood which is of an abnormal and unforeseen nature.

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Residue for Year Ended 31st March, Amount of Gross Earned Income. Increase in Residue. 1946. 1949. Taxpayer With Dependent Wife and One Child £ £ £ £ 400 .. 334 396 62 500 .. 403 476 73 600 .. 470 552 82 800 .. 600 700 100 Taxpayer With Dependent Wife and Two Children 400 .. 342 422 80 500 .. 413 511 98 ' 600 .. 480 587 107 800 .. 612 736 124 Taxpayer With Dependent Wife and Three Children 400 .. 376 448 72 500 .. 421 540 119 600 .. 490 621 131 800 .. 624 771 147