SOUTH AFRICA

Waikato Times, Volume 128, Issue 21370, 14 March 1941, Page 7

SOUTH AFRICA

BIG WAR OUTLAY TRADE POSITION HEALTHY YEAR CLOSES WITH CREDIT (United Press Assn.—Elec. Tel. Copyright) CAPETOWN, March 13 Introducing the Budget, the Minister of Finance, Mr J. H. Hofmeyr, said South Africa intended to spend £72,000,000 in the prosecution with £60,000,000 in 1940-41. Forty with £60,000,000 in 1940141. Forty per cent would be met from revenue and the remainder by loan. The trade position could be regarded as most healthy. The general economic position was flourishing, but was due largely to temporary circumstances arising from the war. The increased yield from taxation bore witness to the flourishing economic condition. The Minister said the year closed with a credit of £BB,OOO instead of an anticipated * deficit of £6,000,000. Fresh taxation would produce £8,500,000. It would include a pennyextra on petrol, beer and cigarettes. The motor-car sales tax would be £7 10s for light cars and £l7 for heavy cars. A further 5 per cent would be imposed on the gold mines contribution, yielding £2,250,000. The Minister said he was altering the income tax system, so that taxation would start at incomes of £345 a year instead of £4OO. Bachelors would pay threepence higher from £3OO. Excess profits tax would be increased to 13s 4d in the pound.

The Minister refused to promise a new heaven and a new earth after the war. He said he preferred to indicate the difficult road of dedication to personal sacrifice.