BRITAIN’S BILL

Gisborne Herald, Volume LXVI, Issue 20054, 28 September 1939, Page 6

BRITAIN’S BILL

SEVERE MEASURES RESOLUTIONS APPROVED STRIKING NEW LEVIES LABOUR CHIEF CRITICAL (Reed. Sept. 28, 1 p.m.) LONDON, Sept. 27. During his speech when introdueing the war Budget in the House of Commons to-day, the Chancellor ol' the Exchequer. Sir John Simon, said that the war had upset the peace-time estimates of what the taxes would produce and the altered scale on which the national sacrifice must, 'be measured. This problem must be promptly faced and boldly handled, or irreparable damage might be done.

“We-shall use taxation and borrowing to raise revenue,” he said. It would be necessary to supplement the amount obtained from revenue by large-scale national defence loans. Britain must -avoid inflation. The contemplated increase in income tax could not take full effect in the present year. In a full year the rate of income tax would be 7s Gd in the pound. Meanwhile the January assessment would too on the basis of 7s. . A reduction in the existing allowances could not be made operative at the time of collection, January 1. Similarly on dividends, interest, etc., liable to tax in the present financial year, 7s was being substituted for 5s Gd. There would toe a special provision to mitigate the severity of the increases where there was a substantial drop in income. The new surtax scales range from Is 3d at 112000 to 9s Od for incomes of over £30,000. If death occurred after September 27 the duty cn- estates exceeding £IO,OOO and not. exceeding £50,000 would toe increased by 10 per cent. Estates of over £50.000 would be taxed an additional 20 per cent. The maximum for the larger estates would be GO per cent. The increases in estates duties would produce £0,000,000 in a full year and £1,500,000 in the current year.

The additional tax on beer would be 24s per 36 gallons, equivalent to Id Q pint, ‘and on spirits it would be 10s Iter proof gallon. The basic duty on tobacco was being increased from l‘ls 6d to 13s (id per lb., equivalent to lid an oz. The wine increases were 2s per gallon on light wines and 4s on heavy. Sugar duties would be increased by the equivalent of id pe r lb. on .full refined products, wi'th corresponding increases on molassc-s and glucose. These would too effective as from September 27. yielding £8,500,000 this year and £18,000.000 in a full year. ... The Leader of Hie Opposition, Major O R Attlee, said that Sir John Simon was right in endeavouring to raise large sums by taxation, but =ome of the taxes would apply to peoole who had not got sufficient today' Changes in the allowances .for income tax would discourage people from having children. lfe had no objection to taxes on alcohol and tobacco, but the sugar tax should be reconsidered. He welcomed the tax on war profits, but said it would be better to have no war profits. The House adopted (lie taxation on alcohol and tobacco without a division. Later the sugar and income tax resolutions were carried.