"MILD AND MODERATE"

Hawke's Bay Herald-Tribune, Issue 87, 29 April 1937, Page 9

"MILD AND MODERATE"

No Withdrawal of Proposals LONDON, April 27, In the debate in the House of Oommons on the profite tax provisione ia the Finance Bill, the Chancellor of |the Exchequer (Mr. Neville Chamberlain), said that he had no intention of with-| drawtag the -proposals which he him^eHj regarded as mild and moderate. Their: actual yield must, of course, depend upon the growth of profits. The charge would be only one-fifth where a firm was not over-prosperous. It was only where .the growth o£ profits' represented something over 15 per. cent. that the higher eharge would oper- ' ate. The profits standaTd would not be' applicable in a large number of eases' for which the capital standard had been ereated. Here confusion had arisen. Capital, j for the purposes of the contribution,, was not share capital. It was a computed figure representing the costs of assets and was subject to certata acf^ justments. The computation would tako time, but once the capital standard had been flxed the basis would, in the case of compauies, be 6 per cent., and, in the case oi firms and tadividuals, 8 per cent. ypon that capital.