EXCESS PROFITS DUTY

Gisborne Herald, Volume LXVI, Issue 20061, 6 October 1939, Page 8

EXCESS PROFITS DUTY

ACTION IN BRITAIN DURATION OF WAR (British Official Wireless.) Reed. 1 p.m. RUGBY, Oct. 5. Speaking in the House of Commons on the new excess profits duty, the Chancellor of the Exchequer, Sir John Simon, said; —“We have taken the general system passed in the spring to secure contribution from the excess profits made by armament firms, and have applied that scheme to the whole field of trade and industry. In this case, as- before, the duty is to be payable as from April 1 last.” It was to be paid on excess of current profits over certain definite prewar standards. "One result i.s that the present Finance Bill repeals the armaments profits duty,” Sir John continued, “because the greater includes the less, but armaments' firms remain none the less under the burden of the old legislation, in effect. They are dealt with under this general provision, as they were dealt with specifically before." Sir John claimed l that the excess profits clutv in the present bili was a great improvement on the McKenna Act at the end of 1915. That tax was based on what was called a capital standard, whereas the present tax was based on the profits standard. In practice, the basis of the capital standard had produced most frightful complications. > As to the duration of the new tax, he could only say he expected it would be for the duration of the war