FURTHER RISES IN DUTY

Manawatu Standard, Volume LX, Issue 124, 24 April 1940, Page 9

FURTHER RISES IN DUTY

(United Press Association.—By Electric Telegraph.—Copyright.) (British Official Wireless.) Received April 24, 10.20 a.m. RUGBY, April 23. Opening his Budget in the House of Commons, to-day, the Chancellor of the Exchequer (Sir John Simon), who said ho aimed to obtain £2,067,000,000 in the financial year—including £1,234,000,000 from revenue—announced the introduction of a new purchase tax, and increases in income tax, in postal charges and the duty on beer, spirits, tobacco, and matches. The Chancellor summed up the nation’s accounts for last year. The country had spent £1,817,000,000, finding £1,049,000,000 out of revenue and borrowing the rest—£708,000,000. He had estimated that he might have to borrow £938,000,000, so the result was better than expected.

TAXATION YIELD. The National Debt of £8,163,000,000 at the beginning of the year had increased to £8,931,000,000 on March 31. Sir John Simon announced that income tax would he at the rate of 7s 6d in the pound, as forecast in his emergency Budget last September. He estimated that the changes in income tax would increase the yield in the full year by £61,750,000.

The Chancellor proposed also to add to the existing duties on beer, spirits, tobacco, and matches. The increase on beer, he said, was a penny a pint and on spirits 15s per proof gallon, representing a rise of Is 9d in the price of a bottle of whisky. Tlie duty on tobacco would he increased by 4s a pound.

Sir John Simon estimated a yield in the full year of seventy millions from the increase in spirit duties and twenty-three millions as a result of the increase in the tobacco duty. POSTAL CHARGES RISE. Sir John Simon also announced an increase in postal charges. The letter rate would he increased hv a penny to 2-Jd, and the rate for postcards would he raised from a penny to twopence. Including changes in the poundage on postal orders and inland telephone charges, he estimated an increased yield of £21.800.000. The new rate on matches would bring Ihe price of a box up to tlirec-half-pcnec. NEW FORM OF TAX. The Chancellor’s proposals included a new form of tax which he estimated would bring in substantial additional revenue. He proposed to call it the “purchase tax.” ihe new tax would he a percentage on the price which would be levied at tlie stage when the wholesaler was selling to the retailer, ft would not apply to food or drink or foodstuff's, whether l'or human or animal consumption. The registered seller would charge the tax to the buyer and would he accountable for it.

Neither the date nor tho rate had yet boon fixed. The tax would put no sort of obstacle in the wav of export trade.

The Chancellor estimated a total contribution from revenue of £l,234,000.000.