TRADERS' DIFFICULTIES

Evening Post, Volume CXXX, Issue 85, 7 October 1940, Page 6

TRADERS' DIFFICULTIES

(To the Editor.)

Sir,—l do not know whether the general public realise just what respectable and well-established traders have to put up with at present. Listening to members of Parliament on the air it is perfectly evident that they at least do not.

Firstly,, in order to carry on one's business at all it is necessary to obtain import licences. This takes considerable time and trouble, especially as lines normally considered necessary for one's trade are prohibited, and it is necessary tb obtain special licences to import raw materials for manufacturing to take their place. Inevitable delays caused by this mean loss of opportunities to buy on the best market, and thus goods are landed at top prices on a rising market, and this brings us to the next difficulty. Permission to increase all prices has to be obtained from the Price Tribunal, and the regulations that have been laid down are apparently made under the assumption that traders are only waiting for shortage of supplies in order to fleece, -the public. Indeed, suspicion has gone so far that one trade union instructed by circular junior members of staffs to advise the union of any, in their opinion, excessive profits made on sales, so that the information could be passed on to the Price Tribunal and action taken.

Having managed to run his business successfully under such difficulties the trader is faced with the staggering problem of taxation. Larger concerns have to pay company tax at the rate of 12s in the £, plus 2s national and social security tax, and this in itself is a (heavy enough burden for most businesses to carry, but this is only a beginning, because traders have in addition to pay an interest-free loan, equivalent to the tax assessment for the year ending March 31, 1939, so that traders may easily have to find money for the Government considerably in excess of their year's earnings. 'Most traders who have not got substantial reserves can only find the money out of capital, which means curtailing their activities or by borrowing from the bank at a rate of 4£ per cent. Either method must cause an inevitable strain on the trader.

Having found money for the State in one form or the other, close on .the value of his entire profits, the trader is now to be faced with a further imposition. No one can seriously object to ah excess profits tax in wartime, as it is obvious that no one should be allowed to profit out of the war, but when it is taken in conjunction with the other taxes and the forced loan, those concerns which have recently been successful will be faced with the prospect of finding money for the State far in excess of any possible profits, and consequently of having their entire business effort crippled and wasted.

Most of us are beginning to wonder how much further taxation we can stand and continue in business when one considers the ever-present prospect of an ultimate future drop in prices and consequent losses for which no provision is allowed. There is such a thing as killing the goose with the golden egp\ and one more stab and the coose will indeed be dead and the State will have to look elsewhere for its revenue.—l am, etc..

J.W.A.H,