WAR PROFITS TAX.

Lyttelton Times, Volume CXVII, Issue 17199, 20 June 1916, Page 2

WAR PROFITS TAX.

TO THH SDITOa. Sir,—lt is all very well, and quite right, to tax those who have made largo profits by reason of the war. But it has always been understood that those profits have been made mainly by the producers of foodstuffs and owners of ships. It appears to me that in trying to get at these people there is great danger of hardship and injustice being inflicted upon others. Unless some safeguards are provided which are not mentioned in the telegraphed report of the Financial Statement, it is quite possible to hit some industrial concerns pretty hard. For instance, I am interested in a small manufacturing company (this is the day or small companies) that has been detrimentally affected bv the war—its raw material has increased in price, has been loaded by primage duty, high freights, etc., It has been impossible to recover more than a very little of this increased cost from the consumer. If you thought nx. to do so. sir, you could of your own knowledge certify that in this oase what I write is correct. Now for the past three years this company has made no profits at all, but this year it is possible that a small profit may be fnade —not by reason of the war, but bv the- introduction of additional capital. Is it fair'that half of this small profit should be taken away by a war tax? There must be many cases of this kind, wind they should be provided for. What would meet the case would" be a provision that before the tax was assessed an allowance should be made to provide for. the payment of, say, 6 per cent per annum on the paidup capital of any company. No one wishes to escape paying their share and "doing their bit,", and I think some such provision would be only "a square deal."—l am, etc.. COMPANY MANAGER. Christchurch, June 17.