French Finance

Hawke's Bay Tribune, Volume XVI, Issue 14, 30 December 1925, Page 6

French Finance

M. DOUMER’S PROPOSALS. NEW INDIRECT TAXATION. (Received 30, 1.30 p.m.) Paris, Dec. 29. M. Doumer estimates the deficit in the 1926 Budget at nine thousand million francs, including 2500 millions for amortisation of the public debt, and two thousand millions for repayment of advances made by the Bank of France to the Treasury. M. Doumer proposes to meet the deficit by a special tax of one-twentieth per cent on all business payments, estimated to produce 3800 millions, bv applying increases of income tax voted on December 4 to the Budget instead of re-absorptipn of inflation, estimated to produce three Thousand millions, and to increase the tobacco duties, producing on e thousand millions. M. Doumer also hopes to recover three thousand millions from taxevaders, to save two hundred millions on Government expenditure, to obtain six hundred millions from the tax on exports, and one hundred millions from increased tax on stock exchange operations. Th© new taxes proposed by M. Doumer are indirect taxes. Radical members of tjie Cabinet opposed the increase of indirect taxation, on tne ground that it bears unfairly on the poor. M. Doumer expresses the opinion that three milliards of francs of M. Loucheur’s taxes, which he is incorporating in the 1926 Budget, will form the high water mark of direct taxation, and direct taxes cannot be collected quickly, whereas the money is needed immediately.—(Reuter.)