BRITISH TAXATION

Gisborne Herald, Volume LXVIII, Issue 20526, 9 April 1941, Page 11

BRITISH TAXATION

PLANS IN BUDGET AN EXTRA £500,000,000 STEEP LEVY ON INCOMES CREDITS AFTER WAR (Elec. Tel. Copyright—United Press Assn.) (Reed. April 8, 2.10 p.m.) LONDON, April 7. A standard rate of income tax at 10s in the pound, an increase to 6s Gd of the reduced rate payable on the first £165 of taxable income and reductions of chief reliefs and allowances, except allowances for children, and the exemption of the limit from £l2O to £llO are effective revenueraising proposals of the Chancellor of the Exchequer, Sir Kingsley Wood, in his war Budget opened in the House of Commons to-day. The estimated revenue for 1941 was £1,636,000,000. Income tax is estimated to yield £609,000,000. The Budget provides for £500,000,000 more in tax revenue than in the last financial year or £1,000,000,000 more than the last pre-war year, and for the raising by taxation of about half of the net estimated expenditure to be financed from domestic loans and taxation together.

There is no increase in indirect taxation and other proposals affecting excess profits duty and medicine duty are of secondary importance. Extra 2,000,000 taxpayers

The income lax proposals will add 2,000,000 to the number ol' those previously liable under this tax and introduce an entirely novel feature of “compulsory saving,” since the additional tax levied in consequence of reductions in reliefs and allowances will be credited up to a maximum or £65 to the taxpayer in the Post Office Savings Bank at the end of the war. The following comparisons illustrate the “bump” taken by the various income groups:— Single Persons

All the above-mentioned incomes are earned incomes.

InPresent Post-war come. rate of tax. New rate. credit. £ s. d. £ s. d. £ s. ( :1. £120 Nil 7 10 0 7 10 0 £200 16 13 0 32 10 0 10 10 i) £500 105 14 0 150 2 0 20 13 0 £1000 232 15 0 381 2 0 43 6 0 Married Couples Without Children £160 Nil 1 6 0 1 6 0 £200 Nil 13 0 0 13 0 0 £500 75 19 0 120 2 0 31 13 0 £1000 253 0 0 351 2 0 40 0 () Married Couples with One Child £220 Nil 2 32 0 2 12 0 £500 54 14 0 101 2 0 31 13 (1 £1000 231 15 0 326 2 0 48 G 0 Married Couples and Two Children £300 Nil 9 15 0 9 15 0 £500 36 13 0 70 2 0 28 9 (1 £1000 210 10 0 301 2 0 48 0 0 Married Couples with Three Children £350 Nil 8 2 0 8 2 0 £500 24 3 0 53 0 0 20 11 ft £1000 18 5 0 270 2 0 48 0 0