HEAVY TAXATION

Wairarapa Times-Age, 8 April 1941, Page 6

HEAVY TAXATION

BRITAIN’S LATEST WAR BUDGET ' NEW INCOME SCALE SOME NOVEL FEATURES. COMPULSORY SAVING. (British Official Wireless.) •'Received This Dav, 12.5 p.m.) RUGBY. April 7. A standard rate cf income tax at 10s in the pound, an increase to 6s 6d of the reduced rate payable on the first £165 of taxable income and a reduction of the chief reliefs and allowances, except allowances for children, and the lowering of the exemption limit from £l2O to £ll9 are the effective revenue- . raising proposals of the latest War Budget presenteci by the Chancellor cf the Exchequer (Sir Kingsley Wood) to the House of Commons. The Budget provides for £500.000,000 more in tax revenue than in the lasi financial year or a thousand million more than in the last pre-war year, and for the raising by taxation of about half of the net estimated expenditure to be financed from domestic loans and taxation together. There is no increase in indirect taxation and other proposals, affecting excess profits duty and medicine duty, are of secondary importance. T’ne income tax proposals will add two millions to the number of those nreviously liable under this . tax and will introduce an entirely novel feature of •‘compulsory saving,” since the additional tax levied in consequence of reductions in reliefs and allowances will bo credited, up to a maximum of £65, to the taxpayer in the Post Office Savings Bank at the end of the war.