BIG DEMANDS

Evening Post, Volume CXXV, Issue 113, 16 May 1938, Page 10

BIG DEMANDS

INCREASING BURDEN

TAXATION AND BUSINESS

"Although we are making more sales and showing a better return to shareholders, the ever-increasing burden of taxation is a matter that is causing your directors serious concern," said Mr. J. S. M&carthur. chairman of the Dental and Medical Supply Co., .at the company's annual meeting. ."A comparison of the profits earned and income tax paid during the past three years will illustrate this point. In 1936 we had a profit of £1992 and paid £286 income tax. In 1937 profits were £2745 and the tax £552. While the profits increased by 38 per cent;, the tax went up 93 per cent. This year our net profit is £3356—an increase of 23 per cent, on last year, while at existing rates the income tax will be approximately £867 or 57 per cent, higher. ~ „„, . "In other words, of our £611 increase in profits more than half—name■ly £315—will go in increased income tax. "In addition to income tax we have to pay land tax (now levied on leasehold as well as freehold property), and collect sales tax and wages tax for the Government. v "These four items of direct taxation amounted, during the year under review, to no less a sum than £3342, which is within a few pounds of the amount left for the shareholders. "When you take into account also the several thousands of pounds paid out indirectly by way of Customs djity, -petrol tax, etc., you will realise what big demands the Government is making on our business today."