EXCESS WAR PROFITS.

Auckland Star, Volume XLVII, Issue 156, 1 July 1916, Page 19

EXCESS WAR PROFITS.

The excess war profits tax (says tho "Daily Chronicle") is too limitedin its scope and also in amount. The Act does not apply to farming or market gardening—two businesses which are nourishing because of the war. It does not include profession*, and therefore leaves insurance brokers, solicitors connected with shipping companies, and other professional men in lull possession of their extra war profits. We think, that a higher tax should be imposed on the shipping trade. Tho shipping trade occupies a unique position. It carries no stock or materials. The State protects the ships from tho enemy, and pays !S(i per cent of the insurance when they are list.' The profits are so enormous that a ship will pay for itself in one voyage. Depreciation is provided for before excess profits begin to be assessed. The excess profits duty does not apply to manufactories which are "controlled" for munition purposes. This practically i removes all engineering works from the Budget operations; but in these "controlled establishments" a rigid restriction on profits is imposed. There is a vast field of industry left where businesses are earning colossal profits, and the. Chancellor of the Exchequer should draw into the public treasury the masimum amount possible.