BRITISH BUDGET RISE OF TAXES

Grey River Argus, 8 April 1948, Page 5

BRITISH BUDGET RISE OF TAXES

TO STOP SPENDING BIG REDUCTIONS TO AID PRODUCTION LONDON, April 6. An overall reduction of 10 per cent, in prices, by reducing the purchas etax; an increase in the price of beer by Id a pint 2 of whisky by 2s 4cl a bottle, all spirits by £1 per gallon, foreign heavy wines by Is a bottle, and light wines by 6d a bottle; an increase in the price of cigarettes from os 4d to 3s fid for 20, and pipe tobacco by 2?>d per ounce; increases in the tax on football and similar pools from 10 to 20 per cent., and a new levy on investment income, some of the features of the first Budget statement of the Chancellor of the Exchequer, Sir Stafford Cripps, presented to the House of Commons to-day.

No cut will be made in the social services expenditure. Food subsidies will continue at the rate of £400,000,000. A capital levy is impracticable at preesnt. The estimated yield from income tax is £1,395.000,000. compared with £1,190,000.000 last year. The Chancellor said he would leave further restriction on profits until next year. INCOME TAX CUTS As income tax reliefs, the first £5O of taxable income will be charged at 3s in the pound, and the next £2OO at 6s in the pound. The 3s in the pound tax on the first £5O of taxable income represents no change, but instead only the next £75 is being taxed at 6s in the pound. The amount taxable at this stage has risen to £2OO. The income tax on the earned income allowance would be increased from one-sixth to' one-fifth, subject to a maximum of £4OO. The exemption limit was raised from £l2O to £135. A levy is to be placed on investment income at the rate of 2s in the pound for incomes from £250 to £5OO, rising to a maximum of 10s in the pound on £5OOO. Sir S. Cripps claimed nobody could now complain that they were held back from increased effort by the severity of the income, tax burden. The income tax remission would amount to £101,000,000 in a full year.

PURCHASE TAX The overall effect of the purchase tax changes will be to reduce prices generally by 10 per cent. The reduction ’will be worth £500,000,000. The reclassification of the purchase tax means that the tax on a large number of articles will be reduced from 50 per cent, to 33 1-3 per cent. DRINKERS AND SMOKERS HIT Sir Stafford announced an increase of Id per pint on beer, 2s 4d on a bottle of whisky, a £1 per gallon increase on all spirits, except perfumed spirits, an increase of Is a bottle on foreign heavy wines and 6d a bottle on light wines. The duty on Empire wines is unchanged. Cigaretes are up from 3s 4d io 3s 6d a packet of 20. The Imperial Tobacco Company announced that pipe tobacco would be increased by 2id per ounce as a result of the Budget increase of 3s 4d per lb of leaf tobacco. ' OTHER TAXES The tax on football and similar pools is raised from 10 to 20 per cent. Bookkmakers on dog courses will pay a graduated licensed duty on each mee'ting. i( The entertainment tax on “live shows has been reduced. There is complete exemption on seats up to Is. The tax on dearer seats is reduced by half.