THE BRITISH BUDGET.

Poverty Bay Herald, Volume XLVI, Issue 14900, 2 May 1919, Page 3

THE BRITISH BUDGET.

TREASURER'S ENORMOUS DIFFI- ■; CULTIES. 1 y - ' ■• ■•.•■—, . s

PEOPLE UN- WILLING TO LEND V SAVINGS. t

. INCREASES OF TAXATION.

THE PREFERENCE PROBLEM.

(Australian and N.Z. Cable Association LONDON, April 29. Mr. Austen Chamberlain, in delivering the Budget, said' that the excess profits tax wuuld be abolished as soon as^ possible. It would be 40 per cent, this year,' yielding fifty millions. ......The piiuicpal preferential articles would be tea, cocoa, sugar,, tobaccb, rum, motor spirit, cinema films, clopka, watches and musical instruments. The preference on spirits, consists of a surcharge of a half-crown on foreign spirits. The reduced tax on tea will operate from June 2. It is anticipated that the total loss of revenue involved will-be £2,300,000. j ': ;^0 (< jncome tax is unchanged. Wine isYsixpence on the lower duty, and ninep'§nce on the higher. . I loans to the Allies and the Dominions include £171,000,000 to the ' Dominions. Death duties have been „ advanced on estates of between £15,---000 and £20,000 from 5 to 6 per cent. ,*■ on estates between £1,000,000 and, £1,500,000 from 30 to 32 per cent. ; and \ over £2,000,000 to 40 per cent. Outlining the preference proposals, the Chancellor admitted that he could not disclose a really large policy. His task was only to give effect to the de- | clarations of the Imperial War Cabinet and the War Conference. The present range of Customs duties ; was not wide, but could be made wide enough to. develop Imperial trade. It was a small beginning, but he predicted that many . members would' see how really wide was the structure erected. It was necessary to bring the Customs into line with excise where the latter existed, because preference must not be granted at the expense of the home producer. They must also remember the interests of the Allies. Therefore, as a general rule, preference ftiust be given by making reductions. Only 10 per cent of, the ; sugar was received from Empire sources and only 2 per cent of tobacco. The Empire's production of sugar would be largely developed. The preference on sugar equalled four shillings a hundredweight and on tobacco thirteen-pence a pound. He was grateful for the oppor- ! tunity of introducing the proposals with which his father's name had been as- 1 sociated. . Mr W. Adanson, following. Mr. Chamberlain, said*-that the Budget disappointed Labour, because : it involved fresh loans, reduced the excess profits on tax and included colonial preference. The workers would not continue to carry the present burdens of, taxation while pro- j fiteers t were allowed to retain their ; unpatriotic gains. The profiteers ought • to be compelled to disgorge. The , Government should control electricity, transport and other public services. LONDON,. ApriI 30. Mr. Chamberlain addressing a comparatively small House, said his difficulties were abnormal. People were less inclined now to lend their savings than in^ war time. There was not the same disposition to accept the burdens without grumbling. The revenue had exceeded the estimate by forty-seven millions, while the expenditure was 393 millions below the estimate. \ . # The daily expenditure prior to the armistice was £7,443,000, and subsequently £6,476,000. The national debt at the, end of March- was £7,435 > 000,000. ' The estimate* of revenue for 1919-20 includes three hundred millions excess profits. "We are," ho said, '«*in a better position to face the future,, because our percentage of revenue to expenditure is the greatest of ' all- the belligerents. Tlie estimated revenue in future in a normal year o*a the existing basis of taxation would! be 659 millions and the expenditure 766 millions. I propose to make the! Budget on that basis; '***- V* He went on to say that the Government proposed to secure a Select Committee to consider the land value;.' duties which at present were unworkable. There should be a reliable valuation of land throughout the country. He proposed to review the motor spirit duty owing to the expense of collection, and also to repeal the excise duty on benzol, dropping the luxury tax and increasing the spirits duty from thirty to fifty shillings per gallon. The new price per bottle would be 10s 6d instead of 9s. The beer duty would be increased frorh 59s to 70s per barrel. Tobacco would be unchanged. It was estimated that the extra revenue from spirits would be twenty-one millions and from beer 'thirty-one millions. Sir Donald MacLean opposed the Imperial Mr. Chamberlain, in. reply, said there would be an opportunity later en to voice this opposition. Resolutions were adopted authorising tea, beer, and other duties. LONDON, April 30. Imperial preference will be based on .existing duties. It will be one-sixth on consumable commodities apart from alcohol, and one third on manufactures. "• '.«''■■