THE BRITISH BUDGET.

New Zealand Herald, Volume LVI, Issue 17151, 3 May 1919, Page 9

THE BRITISH BUDGET.

DISTILLERS' OPPOSITION.

LABOUR PARTY AMENDMENTS.

Australian »nd N.Z. Cable Association.

(R e <jd. 11.55 p.m.) LONDON. Mm 3. Bin-era and distillers are organising opposition to the Budget to defealfthe proposal to increase the spi'A duties. r i m J&Lr.nr Partv intends to move tw*jSjfr.<- demanding a levy on capital, the continuance of the excess profits tax, withdrawal of Imperial preference, and the raising of the income tax exemption limit to £200.

THE COST OF PREFERENCE.

YIELD OF NEW TAXATION. A. »nd N.Z. LONDON. May 1. The total deficit shown by the' Budget is £275,260,000. New and increased taxation for the current i vear will yield £41,450,000 after allowing for a loss of £2,300,000 on the preference proposals, leaving a, net deficit of £233,810,000 raised by borrowing. The preference proposals j for the full year involve the loss of j £3,1 C ,000. t I The newspapers regard Imperial preference as the most significant feature of the Budget, Tariff re- J formers are jubilant at recognition of the principle, while Free Traders declare the proposals are a mere sham, as preference is impossible without a tax on food. The unexpected drop in the excess profits tax has caused satisfaction. The increased death duties on estates of over £15,000 are approved in all quarters in view of the necessities of the situation. Mr. Austen Chamberlain, Chancellor of the Exchequer, stated in the House of Commons that preference on wines would be effected by a reduction in favour of the Dominions. The present duty was Is 3d ' to 3s a gallon, according to strength, while the preference duty would be 6d on the former and Is on the latter There was an additional tax on bottled wine of Is to 2s 6d a gallon. The preference tat was 6d to 9d. Th<> excess profit* tax would be abolished as soon as possible. it would be 40 per cent, this year,

yielding £50,000,00). _ . ' Lobby financial opinion is main y favourable to the Budget, which is regarded as sound, hampering industry as lirJe as possible. The bal-ance-she- is better than anyone dared lo hope.