FRENCH FINANCE.

Poverty Bay Herald, Volume LI, Issue 16921, 30 December 1925, Page 11

FRENCH FINANCE.

M. DOUMER'S BUDGET. NEW PROPOSALS STATED. (Lice. Tel. Copyright-United Pj«SB Assn.l (Eeutcr'a Telegram.) (Received December 30, 3 p.m.) PARIS, Dee. 29. M. Doumer estimates the deficit in l.ho 1926 Budget at, 9,000,000,000 francs, including 2,500,000,000 for the amortisation of'public debt; 2,000,000,000 for repayment of advances made by the Bank of France to the Treasury. M. Doiuner proposes to meet the deficit by a special tax of one-twentieth per ecnt- on a.ll business payments, estimalcd to produce 3.800,000,000; by applying increases to the income tax as voted audi the increase of tobacco duties, producing 1,000,000,000 francs. M. Downier also hopes to recover 5,000,GOO.OOO francs from tax-evaders, and to save 200,000.000 francs on Government expenditure. II also hopes In obtain 600.0C0.C00 from a tax: on exports and 100,000,000 from nil increased tax on stock exchange operations. The new taxes proposed by M. Dou-roi-r are indirect, taxes. Radical members of the Cabinet opposed! the increase ol' indirect, taxation on the ground Hint ii bears unfairly on the poor. M. Doumer expressed the opinion that three milliards francs of ".VI. Loucheur's taxes, which he is incorporating in the 1926 Budget, will form the high water mark of direct taxation, and direct taxes cannot be collected quickly, whereas the money is needed immediately. A DISGUISED TAX. flleuter's Telegram.i (Received December 30. 3 p.m.) PARIS, Dee. 29., The tax on payments whereby M. Doumer proposes to obtain nearly fifty per cent, of the estimated Budget deficit. „f nine milliards francs, appears to be simply a disguised tax oh business turnovers, which is opposed by the Radicals, who. however, agreed to the, tax ill order to avoid a Cabinet p.plifc on the. eve of Parliamentary recess. M. Doumer. in exchange, promised to introduce a. Bill to re-form the direct taxes in conformity with democratic principles, thus meeting the Radial demand for" the widening of the income tax. It is semi-officially stated that the Cabinet- agreement with regard to M. Doumer'.s proposals is unanimous. M. Brin.nd said they introduced the Locarno spirit into the Ministerial Council, and the agreement war, reached on all points, in an atmosphere of perfect cordiality. Questioned with regard to his interview with Captain Canning, on behalf of Abdel Krim. M. Briand said too much importance should not be attached to Captain Panning.