TRIAL IN BRITAIN

Evening Post, Volume CXXXVI, Issue 65, 14 September 1943, Page 5

TRIAL IN BRITAIN

PAY-AS-YOU-GO TAXATION

Rec. 12.45 p.m.

RUGBY, Sept. 13,

! What is believed to be a workable "pay as you go" income tax . scheme has been drawn up, and is reported to have been accepted by the Chancellor of the Exchequer. An announcement, on the subject in the House of Commons is expected soon- after Parliament reassembles. Sir Kingsley Wood intimated m July tiiat he favoured a change in the present system if a satisfactory scheme could be evolved. Inland Revenue Department authorities have been working on alternative plans and it is understood that the present scheme will apply to all of 7,500,000 manual weekly wage-earners. The "forgiveness" provision may have to be included to avoid hardship of wage earners being faced with new "pay as you go" deductions, plus the tax already owing. The proposal is that arrears owing may be forgiven on a sliding scale based on the taxpayer's earnings. . In any case, the flow of revenue will not be interrupted. Where wages with overtime fluctuate considerably it is expected that the amounts will be averaged weekly and adjustments made in the form of rebates or extra payments by the taxpayers at the end of the year. It is not expected that the scheme will apply at present to any but manual weekly wage earners. It will be on trial, and if successful may be included in the Government's post-war plans to apply to the other 5,000,000 taxpayers as well. —8.0. W.