TOO MUCH SPENDING

Evening Post, Volume CXXXIII, Issue 49, 27 February 1942, Page 6

TOO MUCH SPENDING

INCREASED TAXEIS IN-

SOUTH AFRICA

(Rec. 9 a.m.) CAPE TOWN, Feb. 26.

Introducing the Budget, the Minister of Finance, Mr. Hofmeyr, prefaced his taxation proposals with a warning thaj; too much money is being spent lightly. The population was more prosperous than ever, even after paying war taxation.

He announced an increase of 10 per cent, in income tax, a levy of 6s 8d in the £ on trade profits, and a similar amount on land sales. The petrol duty is increased by 2|d. The new taxation, including the special levy on trade profits, is estimated to produce £4,000,000, in addition to excess profits duty. The gold mines special contributions tax is increased from" 16 per cent, to 20 per cent.

Defence expenditure for 1942-43 is estimated at £80,000,000. Less than half the defence expenditure of £72,000,000 for the current year was raised by borrowing.

NEW PLANE ENGINE

NOW IN FULL PRODUCTION

(Rec. 12.50 p.m.) LONDON, Feb. 26

A Rolls-Royce Merlin engine, the Mark 20, with considerably better performance than its predecessors, is in full-scale production, reports the aeronautical correspondent of "The Times."

It is a 12-cylinder, liquid-cooled engine, with a two-speed supercharger. The low-speed super-charger gives 1260 horse-power at 12,250 feet, and the high-speed super-charger 1175 horse-power at 21,000 feet.