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SAVINGS ESSENTIAL

IN MEETING MOUNTING WAR OUTLAY SIR J. SIMON’S BUDGET SPEECH. MORE POINTS ABOUT NEW TAXATION. (British Official Wireless.) (Received This Day, 12.8 p.m.) RUGBY. April 23. Summing up the Budget which he presented in the House of Commons in a speech of over two hours, the Chancellor of the Exchequer (Sir John Simon) said it was essential that saving and the lending of savings should be increased in response to the mounting expenditure of modern war. He concluded: "Provided the zeal and persistence of our people in supporting Government loans equals their fortitude and resolution in paying Government taxes, we have nothing to fear. Our financial front will hold as firmly as does every front in the fight for victory." Dealing with the proposed purchase tax, the Chancellor announced that besides the exemption of food and drink, the tax would also not apply to articles already subject to heavy duty, such as tobacco and petrol, nor generally to such services as gas, electricity and water. The Chancellor said the tax would assist in restricting internal spending, but would put no sort of obstacle in the way of export trade. Dealing with the taxation of excess profits, he said he proposed to provide for a limitation-of-the dividends paid by public companies, which should not distribute a greater dividend on ordinary shares than was distributed in any one of three pre-war periods. He also announced an intention to prohibit the issue of bonus shares. Expenditure for war purposes only until March 31, 1941. is estimated at £2,000.000.000. The estimate of total expenditure is £2,607.000.000. The estimated yield from Stamp duties is £19.000,000; national defence contributions and excess profits tax, £70.000.000: other revenue duties. £1.000,000. The total inland revenue on the existing basis of taxation is therefore estimated at £658.000,000 compared with £82,000,000 in 1939-40.' “In addition to war expenditure,’ the Chancellor stated, “I must provide for the Consolidated Fund Service and the Civil Estimates. It is noteworthy that we were able to raise the first war loans at three per cent. I am assuming that future loans will not exceed the levels recently established. If the standard rate of income lax remained at last year's figures, the estimated yield would be £408,000,000. "Owing to the large sums which were issued under the Defence Loans Act last year, the amount available under this act will be nearly £15.000.-

. 000 greater than in 1939. To that extent the additional burden of interest in 1940 can be met without increasing the debt charge. The sum of £230.000,000 will be enough for interest for the management of the national debt. ■ It is proposed to remove anomalies in | children's allowances for income tax and also to exempt the estates of merchant seamen and- fishermen killed in the war from death duties." Sir J. Simon continued: “Seven months ago, I .gave a warning that a 500 million vole might be insufficient, but it turned out that it was underspent by 911 millions. The revenue estimate of 995 millions was exceeded by 54 millions. The total income tax collected was 390 millions, which was 971 millions above the esti- : mate, chiefly due to an exceptionally I large yield from articles on which the duty was increased last year. , Tobacco ! produced £9.700,000 more than the I i estimate: spirits, £1.760.000 more: sugar. £4.600,000 more, and beer, £750,000 more. The motor-vehicle horsepower tax yielded 34 millions, the most striking case of an unexpected yield Taxes on private automobiles in’ December, January and February amounted to over 101 millions, which | exceeded thqsc of the .corresponding 1; three months of the previous year. I “We spent 1.817 millions, of which I 1,049 millions wore dptwn from rev-1 enue, the remaining 768 millions bet I ing borrowed. The national debt ‘ readied 8.931,000,000 by March 31 ; "The sum of 122 millions'was re-1 ccived last year from r?cw savings cor-1 tifications and Defence Bonds, the in- | come from which was 109 millions above the amount repayable. “Wai- expenditure for the first sev- 1 en months was 905 millions. Expend!- ' line for war purposes on a proportion- 1 ate basis would be 1,500 millions an- ' nually, but the rate of expenditure is ( increasing.” ’ (

OPPOSITION COMMENT < ■ — i RESOLUTIONS APPROVED. • (Received This Day, 11.30 a.m.) • I LONDON. April 23. i ' In the House of Commons the Lea- c j der of the Opposition (Mr C. R. Alt- i lee) approved the taxes on boor, spin- ; its, tobacco and niatcho;-:. lie sm'd the i postal tax was a more doubtful pro- c position. ( Sir A. Sinclair said the task was to raise the country's production to the '1 | highest pitch. -The French." Im said % ■ are making a vastly greater effort f ' h mi V? asked frnnl Rritnin today" r I Ihe Budget resolutions wore ■n- v proved. ' 1

Permanent link to this item
Hononga pūmau ki tēnei tūemi

https://paperspast.natlib.govt.nz/newspapers/WAITA19400424.2.54

Bibliographic details
Ngā taipitopito pukapuka

Wairarapa Times-Age, 24 April 1940, Page 8

Word count
Tapeke kupu
800

SAVINGS ESSENTIAL Wairarapa Times-Age, 24 April 1940, Page 8

SAVINGS ESSENTIAL Wairarapa Times-Age, 24 April 1940, Page 8

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