Tax Adjustments And Increases

Greymouth Evening Star, 16 April 1947, Page 7

Tax Adjustments And Increases

A married man with two children would pay nothing until his earnings were more than £7 a week. He would pay the full standard rate after he earned £9/18/- a week. The changes in the pay packets would operate from July 7 and would be retrospective to April 6. The estimates for 1947/8 were: Expenditure £3,181,000,000 which was £729,000,000 less than the actual expenditure in 1946/7. Defence expenditure was £899,000,000 (£754,000,000 less) and a further substantial reduction was expected in 1948-9. Cost-of-Living Subsidies Education would cost £29,000,000 more than in 1946-7. The universities would cost £12,000,000, which was more than five times the pre-war figure. The Government wanted the universities within 10 years to double their pre-war number of students. The cost-of-living subsidy would be £425,000,000, which would be £50,000,000 more than previously. Dr. Dalton said: “This is « most formidable total which has grown very rapidly. We must now consider whether we can face a further increase in the total cost of these subsidies.” Revenue from all sources in 1946-7 had been £ 3,341,0000,000—£ 180,006,000 more than expected. Expenditure had been £3,910,000,000 — £23,000,000 more than estimated. "Wo spent more than we expected in Greece.” said Dr. Dalton. “All over the world prices have gone on rising

and we had to provide a supplementary sum of £50,000,000 for food.” Revenue from indirect taxation had been £1,184,000,000, approximately equal to what he had expected. Inland revenue produced £1,777,000,000, which was £91,000,000 more than the estimate.- Of this surplus, income tax accounted for £45,000,000, excess profits tax for £33,000,000, stamp duties for £9,000,000 and death duties for £8,000,000. Expenditure totalling £3,910,000,000 was £23,000,000 more than estimated. Defence expenditure was £14,000,000 less than anticipated but the civil expenditure was £27,000,000 more. Housing And Health Dr. Dalton said that more money would be provided for housing, health services, family allowances and land development. Those responsible for land development were being “produced” because development was going too slowly. Motor taxes would be unchanged. Stamp duties relating to stocks and shares and, with the exception of those relating to small transactions and those relating to transfers of real property would be doubled to two per cent. Legacy and succession duties would be doubled, the tax on distributed profits increased to 122 per cent., and the tax on domestic heating, cooking and other gas and electric appliances increased to 66 2-3 per cent, of the wholesale value.