TAX ON LUXURIES

Dominion, Volume 11, Issue 249, 9 July 1918, Page 7

TAX ON LUXURIES

now I'TUNCK ])OKS IT. London, April 20. Trom .Melbourne "Ago" Correspondent.) The British Government, following the example nf (lie Fronch Ciovcnimenl, lias decided lo put a tax on luxuries. Tlio main object of tlio tax is to raise- revenue, but an important supplementary object is to deter people, who 1110 making money in these day.3 of war prosperily, from (•pending it on luxuries. In tlio interests ot the Stale it is very desirable llint I hey should subscribe to war loans instead of .spending their money. hast year tlio .British Chancellor of the Kxchcqucr considered tlio question of imposing a las on luxuries, but lie was advised Unit the diiiieiilties in the way of imposing and collecting such a lax were- ho grout I hat it would l« better to abandon tlio idea. Since- then the French tlovornment; has imposed a luxury lax. and the British Chancellor of the Exchequer has obtained information on the subject from franco, and has decided lo follow closely the French system.. The French lax is at (he rale of 10 per cent., and it is collected by menus of stamp duly, the stamps lieing placed on the article. The tax is divided mla Iho seel ions. There is a tax on (he full price o[ certain articles- of luxury, such as ni(itor--ar.s, jewellery,-ornaments. On other articles, .such, as watches, bicycles, boots, lints, furiiiliire, the tax begins when Ihc article is sold above n certain price. Below the specified price the article, is not taxed. The British tax will be on tho same lines, but it will be at the rate of (id. in the shilling, A. select committee of the House of Commons has been sppoinlcd to draw up a list of articles to bo taxed, and lo lis tho prices at .which some of the article; will be untaxed. The. French tax is expected lo -viold ,C 21,000,000 in revenue What the British tax wilt yield cannot be estimai-'d at nroseut, but it will prob ably be- <;v-?r ,£50,000,00(1. In the British lax' there will be a third section for th( taxation of luxury cstablishmcnts-expei). five hotel:;, restaurants, and the homes oi wealthy people that are maintained . al great expense. Tho following is a list of the article! thai: are taxed in Franco on their fill, value:— Photographic appliances, gold or pla tiiium iewellery, billiard-tables, silk litis iei'y and underwear, artistic bronze anc iron work, horses and ponies for pleasun purposes, curiosities and antiques, sport ing guns, books, servants' iiverir-s, goli watches, wri'uniery, soaps and dentifrices paintings" and sculrjlure, pianos (othel than collage pianos), tapestry, trunks pleasure boats itfd yachts. The Trench tax is imposed on cho fol living articles when they are sold be voiul the prices specified:— ' Pet dogs (.£1 lis.), oilier pets (Bs.) smokers' re(|uisites (Ss.), bicycles L-C10), sil ver jewellery (Si.), picture frames (Ss.) walking sticks (Bs.), chinawaro iablo se.r vice (,£S), single pieces. (Is. 7d. If 125.) men's headwear (10s.), women's lials (.£ Ins.j,1 n s.j, footwear (women's, .£1 125., mens ir'i. chocolates vis. pec lb.), corsets (AS) men's suits (XT), women's costumes o mantles (C 10), scissors (Bs.), lace and em hroiderv (machine made, Is. sd. per yard hand made. 7s. Id. per yard), artihoiii flowers (Ss.), furs Ml), gloves (us. Id.) gramophones (.-EG), games (10s.), table cloths (,£2 Ss.), furnituro (<C(10 per suite] mirrors (10s.), motor cycles USO), watchc (£2), handkerchiefs (Us. M. per downi umbrellas (.CI), feathers (=01), clocks (.frl, photograph* (.£1 12s. per dozen.., cot tag pianos (£lßl, curtains (.CD, carpets (1-fc fid. per yard), pyjamas . and ilressing ..owns (.CO -Is.), horse carnages (£10), bin cages (Ss.).