BUDGET DEBATE

Nelson Evening Mail, Volume LXXI, 29 April 1937, Page 7

BUDGET DEBATE

NATIONAL DEFENCE CONTRIBUTION FIXING OF STANDARDS CONSIDERATION BY CHANCELLOR [British Official Wireless] RUGBY, 27th April. The Chancellor of the Exchequer (Mr Neville Chamberlain) speaking in the House of Commons on the Budget resolution relating to the proposed national defence contribution, added that in the meantime he would go somewhat further into two points. The iirst related to the years of the profit standard, which, in the Budget statement, were 1933, 1934, and 1935. The Chancellor said he was prepared to reconsider that either by way of some choice given to taxpayers to choose between tlw different years, or by adding the other years, or a combination of both, but he would not commit himself at this stage. The second point related to,the alternative capital standard and to suggested, rates of profit on that basis to which tax would be adjusted. PROFITS TAX PROVISIONS [United Press Association—By Elootrie Telegraph—Copyright] LONDON, 27th April. Regarding the profits tax provisions in the Finance Bill, the Chancellor said that he had no intention of withdrawing the proposals which he himself regarded as mild and moderate. Their afctual yield must, of course, depend upon the growth of profits. The charge woUld be only one-fifth where a firm was not over-prosperous. It was only where the growth of profits represented something over 15 per cent, that the higher charge would

operate. The profits standard would not be applicable in a large number of cases for which the capital standard had been created.

Here confusion had arisen. Capital, for the purposes of the contribution, was not share capital. It was a computed figure representing the costs of assets and was subject to certain adjustments. The computation would take time, bqt once the capital standard had been fixed the basis ivould, in the case of companies, be 6 per cent., and, in the case of firms and individuals, 8 per cent, upon that capital. MARKETS MORE CHEERFUL (Received 29th April, 10.30 a.m.) LONDON, 28th April. Mr Chamberlain’s statement heartened the markets, industrials particularly being more cheerful. The Australian Associated Press city editor understands, however, that neither the city nor many Conservatives are completely satisfied and will press for important amendments and concessions.