ratio of the "Standard rate" (10% in 1947/48). The full rate is levied on corporations and on unincorporated businesses (with some marginal relief) earning over $7,000. Salaries and Annuities Tax, after allowances have been deducted, is levied at rates varying from a quarter of the standard rate on the first $5,000 to twice the standard rate on incomes of over $35,000.

Revenue derived from the four taxes in 1947/48 was as follows:-

Property Tax

Profits Tax

Salaries & Annuities Tax

Interest Tax

$ 2,231,500

10,793,300

742,400

374,400

Total:

$14,141,600

Assessment Tax (Rates).

There is a general rate of 15% plus a water rate of 2% on assessed rateable value. Properties in outlying districts which have unfiltered water pay a water rate of 1% only, and this rate is re- mitted altogether if no water is available. Nearly $10 million accrued from this Tax in 1947/48.

New Measures.

No new taxation measures of any importance were introduced during the year under review, but many comparatively minor licence and permit fees, which had been in force before the Pacific War, were reintroduced and in some cases the charges were increased.

Expenditure.

The major items of Expenditure during the year 1947/48 were, in round figures:-

(a) Miscellaneous Services: (Includes High Cost

of Living, Rehabilitation and Special Allow- ances $23,834,000, Settlement with H. M. Government $20,617,000, Salary Adjustments $3,823,000)

(b) Public Works Department Recurrent &

Extraordinary

(c) Medical Department

(e) Police Force

(d) Stores Department

(f) Education Department

(g) Pensions

$60,764,000

9,608,000

8,268,000

8,176,000

6,628,000

6,445,000

5,922,000

Owing to the big rise in prices generally, considerable expen-

diture was incurred on cost of living and other related allowances

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