John W. Stadtler, chairman of National Permanent Federal Savings and Loan Association, yesterday appealed to the D.C. government for tax relief for the savings and loan industry.

"I understand D.C. budget problems, but I would hope for the same tax rate as our corporate brothers. S&Ls, banks and utilities are subsidizing the rest of the business community," Stadtler told directors assembled for the annual meeting. These included former D.C. mayor Walter Washington, the first elected city chief in a century, who also had to grapple with budget problems.

Stadtler predicted that as a result of the economic downturn, National Permanent would wind up paying a D.C. gross earnings tax greater than its net income, even though its federal taxes would be minimal.

Last year Stadtler said National Permanent had a modest gain in assets, up to $711 million from $690 million. Mortgage loans totaled $632 million, up a mere $20 million over the previous year. Savings declined $18 million. Nevertheless, National Permanent had a net income of $3.5 million that was transferred to reserves.

The chairman of the second largest S&L in the Washington area said he was not confident positive numbers would continue in 1980, but added National Permanent's $46.5 million in reserves should be a source of comfort to both management and depositors. Besides tax relief, Stadtler said approval of interstate branching was essential to helping the industry through this difficult period.

Stadtler, George I. Borger Jr., Timothy A. Dunworth and Leonard B. Doggett Jr. were reelected to three-year terms as directors.