AUSTERITY IN DENMARK

Ashburton Guardian, Volume 71, Issue 36, 22 November 1950, Page 8

AUSTERITY IN DENMARK

REDUCED STANDARD OF LIVING PLANNED ■ LONDON, Nov. 21. The Danish Minister of Finance (Mr Thorkill Kristensen), in a broadcast, gave details of an austerity programme designed to cut Denmark’s standard of living to reduce the foreign currency gap. He announced that a packet of 20 cigarettes would in future cost 3s—a rise of' sd—that the tax on wines, spirits and beer will be increased considerably, that car tax will be doubled, and the purchase tax on new cars raised. There will be higher duties on tea, coffee, furs and spices and new taxes on telephones, radio and photographic apparatus, vacuum cleaners, gramophones and refrigerators. In future every Dane travelling abroad will pay 20 per cent, tax on the foreign currency he purchases. A defence tax is to be levied to cost those with £4OO a year 10s and those with £BOO a year £24.

Super tax on an income of £IOOO a year will be £9, and on £25,000 it will be £1330. In addition, compulsory savings ■which are not repayable for eight years will take £lO from a man with £3OO a year and £SB from a man with £IOOO a year.