NEW BRITISH TAX PLAN

Press, Volume LXXIX, Issue 24053, 15 September 1943, Page 4

NEW BRITISH TAX PLAN

“PAY AS YOU GO” PRINCIPLE

(8.0. W.) • RUGBY, Sept. 13. What is believed to be a workable “pay as you go” income tax scheme for Britain has been drawn up. and is reported to have been accepted by the Chancellor of the Exchequer (Sir Kingsley Wood)! An announcement is expected to be made in the House of Commons soon after Parliament reassembles.

Sir Kingsley Wood intimated in July that he favoured a change in the present system if a satisfactory scheme could be evolved. The inland revenue authorities have been working on alternative plans and it is understood that the present scheme will apply to all the 7,500,000 manual weekly wageearners.

A “forgiveness” provision may have to be included to avoid the hardship of wage-earners being faced with the new “pay as you go” deductions, plus tax already The proposal is that arrears owing may be forgiven on a slid : .ng scale based od the taxpayer’s earnings. In any case, the flow of revenue is not to be interrupted. Where wages with overtime fluctuate considerably it is expected that the amounts will be averaged weekly and adjustments made in the form of rebates or extra payments by taxpayers at the end of the year. It is not expected that the scheme will apply a i present to any but manual weekly Wage-earners. It will be “on trial” and, if successful, it may be included in the Government’s post-war plans to apply to the other 5,000,000 taxpayers as well.