SPECIAL DEFENCE TAX

Poverty Bay Herald, Volume LXIV, Issue 19334, 26 May 1937, Page 3

SPECIAL DEFENCE TAX

INCIDENCE IN BRITAIN ABOUT :'.'>,< Hiti CONCERNS (?.rilisli Official Wireless.) UCGBV. May 24. The Finance Hill -has aroused unusual interest from the fact that, il embodies changes in the Budget proposals for the national defence contribution which were foreshadowed bv the Chancellor ol the Exchequer, Mr. Neville Chamberlain,, before the WhitßUn* recess, and which have resulted from the consultation be had in an interview with representatives of industry, commerce and finance. The graduation of the tas> has been modified. The tax, at the rate ol ouefifth, will be applicable to profits in the zone of from 6 per cent to 12 per cent of capital, instead of from 6 per cent to 10 per cent, and the one-quarter rate will be applied to the zone from 12 per cent to lo per rent, instead ol the zone of from 10 per cent to 15 per cent. The hill contains provisions under which any class or subdivision of trade or business may apply for an increase ol the statutory percentage allowed on capital, on the grouuds of exceptions risks incurred, or of any exceptional wastage of. or exceptional deferment ot the yield on the capital employed therein. Where the class, or subdivision, lias obtained ah increase of the statutory percentage for the purposes of war excess profits, the. duty on such increased percentage shall, provisionally, be allowed, pending confirmation or variation <■! revocation of the order giving effect to such increase. The Chancellor ol the Exchequer estimated that the number ol concerns liable to pay the national defence contribution was approximately 55.000.