THE COUNTRY’S TAXES.

Gisborne Times, Volume XXXIII, Issue 3601, 14 August 1912, Page 2

THE COUNTRY’S TAXES.

NEW PROPOSALS EXPLAINED.

HOW THE GRADUATED LAND TAX WILL BE WORKED.

Bv Telegraph—Special Correspondent “ "WELLINGTON. Aug. 13. The increase in the Graduated Land Tax foreshadowed in the Budget is proposed in a Land and Income -V-—■ sessment Bill introduced by Governor’s Message in the House of Representatives this afternoon. Under the existing system tlie graduation is by large amounts, which the G-overnmihit considers inequitable, and it now proposes to alter the law so that the graduations will be regular and increasing with every £1 increase in the unimproved value. The 25 per cent, additional graduated tax which is now imposed on estates i f £-40.000 or more will he made to apply to estates of £30,000 or more in value. _ The following is the system of graduated tax: Unimproved value of from £SOOO to 015,000 —A duty for every £1 of one thirty-second of a penny, increased by one thirty-tW'O-tliousanck'tli of a penny for each £1 in excess of I*sooo. Unimproved value of more than £15,000 to £3O.OOO—A duty for every £1 of eleven-thirty-sevonds of a penny increased by one forty-thousandth of ,a. penny for every £1 in excess of £15,000.

Unimproved value of more than .630,000 to £2OO,OOO—A duty for every £1 of twenty-three thirty-sec-onds of a penny, increased by three one-hundred-thousandtlis of a penny for every pound in excess of £30,000. Unimproved value of more than £200,000 —a duty of five and fivesixths of a penny for every pound of the unimproved value. An important effect of the proposed change will be that the tax on estates of the value of from £SOOO to £15,000 will be reduced. Where a widow has children dependent on her the Commisisoner niay, in his discretion, allow an exemption from taxation not exceeding £3500. Another new proposal is that income tax is to be paid on all moneys received from the lease or sub-lease of premises licensed) as hotels or accommodation houses, except that a deduction is to be -mado of five per cent, ot the capital value of the taxpayers’ interest in tlie premises. The profits from Crown reserves and endowments occupied for pastoral purposes are to he assessed for income tax as other Crown pastoral lands arc at present.