WINNING THE WAR

Manawatu Standard, Volume LX, Issue 130, 2 May 1940, Page 9

WINNING THE WAR

BUDGETARY BURDENS. CHANCELLOR’S HINT. SUBSTANTIAL CLAIMS. (United Press Association —By Electric Telegraph.—Copyright.) (British Official Wireless.) Received May 2, 11.20 a.m. RUGB Y, May 1. In asking ike House of Commons to give its approval for the Budget resolution relating to the proposed purchase tax, the Chancellor of the Exchequer (Sir John Simon) said that on the second reading of the Bill, which he hoped to present in the form which had been discussed with trade associations, the House would have a full opportunity of examining the scheme, which was something new in Britain’s armoury ol taxation.

The sales taxes, said the Chancellor, existed in many parts of the world and had been- applied with success in the British Dominions. He explained the reasons for his decision to impose the tax at the point between the wholesaler and the retailor, and dealt with the exemption to be accorded to food, drink, fuel, and public utilities services. He thought it would be necessary to include clothing, but promised to consider the views of the House.

They were engaged in a tremendous struggle, said Sir John, and it was essential to limit consumption. It was one of his main concerns and responsibilities when there were enormous additional demands for war purposes to keep down the demand put forward by civilians.

Replying to Opposition suggestions that the income tax on higher grades of income was not sufficiently severe, Sir John Simon warned the House that they would have to have recourse before they had done with the war to this instrument of taxation of incomes in a most formidable fashion. It was impossible to suppose it could operate only at one end of the scale. :Not in that way could large additional sums be secured.

Just as two-thirds of the whole consumption was by individuals getting £5 a week or less, so they must face the fact that there would have to be substantial claims —manv of them hard to bear—at the lower end of the scale, though he did not say the lowest ol all.

They must let the lowest of all hate such protection as thev con'd give them, because they bad so little. He. however, was sure the House and the country were, never going to fail to accept anv and every burden proposed so long as it was necessary to win the war.