UNPOPULAR TAX

Taranaki Central Press, Volume IV, Issue 449, 3 June 1937, Page 5

UNPOPULAR TAX

PROFITS OF INDUSTRY Government Abandons Proposals (British Official Wireless.) London, June 2. The Prime Minister, Mr Neville Chamberlain, winding‘up the secoifd reading of the debate on the Finance Bill in the House of Commons, 'announced the withdrawal of the proposed national defence contribution graduated tax on the growth of profits. Mr Chamberlain’s speech followed a sustained and powerful attack on the proposal, to which Mr Winston Churchill made an important contribution.

The' tremendous cheers which greeted Mr Chamberlain’s announcement of abandonment of 'the tax expressed th e relief not only of the members of the House of Commons, but also of industrialists throughout Britain. It is expected that confidence will speedily return to the markets.

After a general defence of the Budget proposals (against Opposition criticism the Prime Minister turned to part 3 of the Bill, against which criticism had been directed chiefly from the ranks of 'the Government’s own supporters. He said he had to admit that there appeared to be genuine alarm as a result of the proposed new 'tax, which held up business to an extent which was very undesirable.

When th e Bill was ip committee the Chancellor would not proceed with part 3 providing for national defence contribution, and in the meantime he will work out other proposals tor a simpler tax upon the profits of industry. The tax will be designed to produce not less- than £25,000,000 in a full year. 1 he Bill was read a second time. Mr Chamberlain said he was told that th e tax was expect’d to- give a great deal of trouble, to cost a great deal of money and restrict people from attending to ordinary routine business On the other hand, industry wished it to be understood -that it did not challenge the propriety of finding the amount he w.nttd from profits. It seems to be I should not only be- something less than prudent, but I should be stupid if I were to persist in a Particular method of getting what. I want if I can get. it by simpler methods and in larger amounts,’’ said the Prime Minister. That was. what, after consultation with the Chancellor of the Exchequer he proposed to do. He would not an’ icipatte what th e proposals of the Chancellor would be. This would require a new financial resolution and le first intimation the House would have of the nature of the new proposals would be when the Chancellor tabled a resolution, which would be on the earliest-possiblg occasion. The Conservative and the Radical Press combine in .editorial approval. The Daily Telegraph says: “Mr Chamberlain inaugurated his office as Prime Minister with an act of high courage,”