EXCESS PROFITS

Evening Post, Volume CXXVII, Issue 140, 16 June 1939, Page 10

EXCESS PROFITS

MAKING OF ARMAMENTS

LIMITATION IN BRITAIN

PROVISIONS FOR TAX

(British Official Wireless.) (Received June 16, 2 p.m.) RUGBY, June 15. Further measures to limit the profits of firms engaged in the manufacture of armaments were announced by Mr. Chamberlain, who recalled his undertaking at the time he announced the introduction of conscription that the matter of profits from the making of arms would also be considered. He said that the provision contained in the Ministry of Supply Bill, together with the ordinary contracts procedure, revised, as it has been, from time to time to take account of changing conditions, went far in the direction of preventing excessive profits. The Government felt, however, that there might be cases where, in particular by reason of large increases in turnover, further measures of limitation were called for and it therefore proposed to include in the Finance Bill provisions for a tax on concerns engaged on a large scale on armament work in respect of any excess profits arising from that work. A memorandum explanatory of the proposals will be issued with the necessary Ways and Means resolution on Monday.