ARMAMENT PROFITS

Dominion, Volume 32, Issue 260, 1 August 1939, Page 9

ARMAMENT PROFITS

Details Of British Bill

“Dominion” Special Service —By Airmail. LONDON, July 13. When Mr. Neville Chamberlain, the Prime Minister, recently introduced the Government’s peacetime Conscription Bill, he foreshadowed that some limitation of the profits of firms engaged in armament: manufacture would naturally follow. True to this promise, the Government has just issued its proposals for the imposition of an armaments profits duty. The duty, which will remain, in force for the next three years, will apply to all firms substantially engaged on armament manufacture, and in receipt of orders of a value of more than f 200,000 a year, if it can be shown that the profits of such firms are above the usual yearly average. The duty on the excess profit is fixed at sixty per cent.

It will be the duty of the Ministry of Supply to decide and declare which firms are engaged on annulments manufacture, and also to declare the amount each firm receives for armament supplies. The term armament, supplies is a comprehensive one, including articles and works “required for the purpose of the armed forces of the Crown, or machines, tools or materials required for the manufacture or repair of such articles.” No selective tax can be expected to arouse enthusiasm from that, section of the community whose pockets it aims at lightening, but: tlie new tax has also been received calmly in the British business world. It is generally admitted that the principles on which it is based are fair and just, and it is realized that the international situation calls for sacrifices previously only resorted to under the stress of .war.