Bigger Exemptions From Tax Sought

Press, Volume CVI, Issue 31275, 23 January 1967, Page 12

Bigger Exemptions From Tax Sought

Increases in taxation allowances for wives, private school fees, and superannuation contributions by the self-employed are advocated by the Associated Chambers of Commerce.

The organisation, in submissions to the Taxation Review Committee, says the allowance of £156 for a dependent wife is far too low, and should be increased. The present allowance of £5O for private school fees is described as inadequate, and the association seeks an increase “to a more realistic level.” It recommends that the existing maximum exemption allowance of £325 be increased to £5OO for self-em-ployed persons’ superannuation contributions. The organisation says it is recognised that action on these lines would significantly affect the level of personal income tax revenue, and it suggests that there should be an appropriate diversion from

direct taxation to indirect taxation. “Direct taxation forms far too high a proportion of total taxation revenue, and a shift of emphasis to Indirect taxation would be fully justifiable,” the chambers say. Consumer subsidies should be abolished over an appropria' > period of years, the chambers say. Existing subsidies not only conceal costs, but encourage waste and are no longer justifiable, it is claimed.