Profits Tax Up To 30 Per Cent

Northern Advocate, 28 September 1949, Page 5

Profits Tax Up To 30 Per Cent

LONDON, Tue. (2.30 p.m.). Sir Stafford Cripps’ proposal to increase the tax on distributed profits from 25 to 30 per cent means that the tax collector, instead of taking 11/9 out of every pound of the shareholder’s return, will now take 12/3s. The shareholder will get only 7/Bs. Reuters said observers see the influence of the trade union movement in this new move by Sir Stafford to keep wages and profits stabilised. Political quarters predict that the Government will introduce a “little budget” in Parliament next month to give statutory effect to the increase of one-fifth in profits tax. The increase takes effect immeditely. It is a special measure to deal with ;xtra profits which exporters will make from devaluation of the pound terling by 30 per cent. The “little budget” is expected to take the form of a one-clause Finance Bill to be introduced soon after Parliament reassembles in mid-Oct-ober. The decision to increase the profits tax will answer long-standing criticisms by many of the Governments trade union and political supporters, that while the. wages of workers were being pegged, profits of industry were still too high.